Ola Electric secures INR 3,200 crores to expand EV manufacturing and lithium-ion cell factory

On October 26, 2023, Ola Electric announced the successful closure of approximately INR 3,200 Crores in funding from a combination of equity and debt rounds. This funding was secured from Temasek led marquee investors, along with project debt from the State Bank of India. The funds raised would be utilized towards expansion of Ola’s EV business and setting up its lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu. 

Ola Electric was selected by the government to participate in the cell PLI scheme, with an allotted capacity of up to 20 GWh. Ola is establishing a lithium-ion cell manufacturing facility in close proximity to Ola’s Futurefactory in Krishnagiri, Tamil Nadu. This facility, the first of its kind in India, will have an initial capacity of 5 GWh in phase I, with plans for further expansion to reach 100 GWh at full capacity. In line with the electrification movement in India, Ola Electric intends to accelerate its growth by increasing its 2-wheeler manufacturing capacity, introducing electric motorcycles, and subsequently venturing into electric cars. Additionally, the construction of the Gigafactory will be expedited, as claimed by the official source.

Bhavish Aggarwal, Founder & CEO, Ola Electric, said:“At Ola, our vision is to end ICE age in automobiles and our upcoming Gigafactory will be a big leap in India’s journey towards becoming a global EV hub. We are committed towards developing core technologies in EVs and cell and are rapidly scaling up manufacturing to further accelerate the transition to sustainable mobility. Our investors and lenders have shown deep faith in Ola’s vision, and we thank them for the constant support and encouragement.”

The forthcoming Gigafactory in Krishnagiri, slated to be operational in early 2024, will have the capability to domestically produce cells on a large scale, bringing India closer to energy independence.

Ola Electric expanded its scooter lineup to include five models, with prices ranging from INR 89,999 to 1,47,499. These models, namely S1 Pro, S1 Air, S1X+, S1X (3kWh), and S1X (2kWh), are built on an advanced Gen-2 platform. Additionally, Ola has introduced a range of motorcycles set to be launched by the end of the following year. Designed to cater to diverse consumer preferences, this lineup comprises four models: Diamondhead, Adventure, Roadster, and Cruiser, each adhering to global design standards.

Also Read: Ola Electric unveils new e-scooters, motorcycles, and features at annual event.