Ola Electric has revealed its plans to invest USD 100 million in the initial phase of building its gigafactory in Tamil Nadu. The EV maker plans to produce indigenous lithium-ion batteries at its facility with an aim to power its electric vehicles with its own battery cells by early next year. Currently, the batteries are sourced from Korea and China.
Ola founder Bhavish Aggarwal expects that in-house battery production will reduce costs and improve profitability. However, the decision to pass on the benefits to consumers will depend on market conditions.
The company is also developing solid-state batteries at its battery innovation center in Bengaluru, which it claims will reduce the risk of battery fires. The technology is in the research phase.
Aggarwal adds that it is difficult to provide a timeline for completion, as solid-state battery technology is still at a nascent stage.
Ola’s gigafactory operates an all-women factory for EV manufacturing. Talking about it, Aggarwal revealed that women are more disciplined and dexterous on the floor. “There are more women in the junior level and you would have seen some men in the factory. Those are at the managerial level. We don’t find a lot of qualified women at the managerial level and end up hiring men. Even there, we hope to hire more women,” he added.
Meanwhile, the Securities and Exchange Board of India (SEBI) has approved Ola Electric’s IPO, comprising a primary issuance of INR 5,500 crore which will be launched by the end of this year.