Ola Electric Plans Rs 2,000 Crore Fundraise, Focuses on Battery Capacity and Energy Storage Growth

Ola Electric has started a plan to raise up to Rs 2,000 crore. The company will sell a partial stake in its battery unit, Ola Cell Technologies.

This move aims to improve its financial position and support future growth. In addition, investment banks Avendus Capital and Motilal Oswal Financial Services are managing the process.

Perhaps this step will also help set a clear market value for the battery business. However, the company has not shared exact valuation details yet. Reports suggest strong interest from global investors, including sovereign wealth funds.

Expanding Local Battery Production

Ola’s battery facility is located in Tamil Nadu and plays a key role in its plans. Currently, the plant has a capacity of 1.5 GWh. However, the company plans to increase this capacity to 6 GWh soon.

This expansion supports India’s goal of building local battery manufacturing. In addition, it reduces dependence on imported battery cells. The gigafactory project has already seen an investment of around Rs 3,500 crore.

The plant will not only support electric scooters but also other energy needs. Therefore, it can serve multiple sectors in the future. This makes it an important step for the EV ecosystem.

Strong Focus on Research and Innovation

The company also runs a dedicated research unit for battery development. It has over 200 experts working on advanced battery technologies. In addition, the team has built nearly 400 patents so far.

Their work includes different battery chemistries like NMC, LFP, and LMFP. Moreover, they are exploring new formats such as cylindrical and solid-state cells. This helps improve performance and safety.

Ola has also developed a special dry electrode process for batteries. Using this, it created the 4680-format Bharat Cell. This battery has already been used in its vehicles for several months.

Growing Role in Energy Storage

India is increasing its focus on renewable energy sources. The country aims to generate 50 percent of its electricity from renewables by 2030. However, energy storage is needed to manage supply and demand gaps.

Ola has already introduced home battery storage systems. In addition, it plans to expand into commercial energy storage solutions. This could support industries and large-scale energy use.

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