Both the companies have recently signed the PLI scheme proposed by the Center which provides incentives to set up local manufacturing facility for EV battery cell technology.
Ola Electric will be one of three Indian companies working on developing locally manufactured electric vehicle battery cells in an effort to boost EV infrastructure in the country. Ola Electric has signed agreements with Reliance New Energy and Rajesh Exports, under the Centre’s Production Linked Incentive (PLI) scheme. 18,100 crores. Ola Electric, which currently makes electric scooters, is also aiming to introduce its first electric car soon. The EV maker is already looking for partners to set up a new facility where it will develop EV batteries as well as work on an electric car.
The three companies that have been finalized under the Centre’s PLI scheme are expected to create 95 GW of battery manufacturing capacity. They will be required to set up the manufacturing facility within a period of two years. Incentives will be given to companies for the next five years on the sale of manufactured EV batteries. “This will be conducive for the EV ecosystem and energy storage market as it will support the demand for EVs and renewables and attract investment in this sector,” said Union Heavy Industries Minister Mahendra Nath Pandey.
Ola Electric and the other two companies were selected from a group of 10 bidders who were vying for the opportunity to set up a 128 GWh capacity building facility under the PLI scheme.
Ola Electric had earlier demonstrated an indigenous lithium-ion battery cell which is to be produced from next year. The battery comes as a high nickel cylindrical cell and uses NMC on the cathode side; And on the anode side is graphite and silicon, claims Ola Electric. Bhavish Aggarwal, CEO, Ola Electric, had said, “Ola is building the world’s most advanced cell research center that will enable us to rapidly expand and innovate and create the most advanced and cost-effective EV products in the world with speed. Our first indigenously made Li-ion cell is also the first of many in our cell technology roadmap. Having a strong local EV ecosystem is critical for India to become a global EV hub.”
The Center had earlier launched the PLI scheme under three categories. The first two are for the auto sector of value 25,938 crore, and FAME policy value 10,000 crores. The third one is for Advanced Chemistry Cell. Together, the scheme is expected to help India expand the EV ecosystem in the country and become a major hub for EV manufacturing.
First published date: 30 July 2022, 13:06 PM IST