Ola Cell Technologies

Sector: EV Battery Cell Manufacturing  |  HQ: Bengaluru, Karnataka, India  |  Founded: 2021  |  Employees: unknown

Listed as: Privately held  | 

Company overview

Ola Cell Technologies Private Limited is the battery cell manufacturing arm of Ola Electric Mobility Limited, the Bengaluru based electric vehicle manufacturer behind the Ola S1, S1 Pro and S1 Air electric scooters and the upcoming Ola electric motorcycle and electric car platforms. Ola Cell Technologies was established in 2021 to indigenise lithium ion battery cell manufacturing in India, supporting Ola Electric's vertically integrated EV strategy and tapping the Production Linked Incentive scheme for Advanced Chemistry Cell manufacturing announced by the Government of India in 2021. The company is constructing a Gigafactory in Krishnagiri, Tamil Nadu, which is being built in phases to reach an eventual capacity of 100 gigawatt hours per annum, which would make it among the largest battery cell manufacturing plants globally. Initial commercial production is targeted at lower capacity tranches in 2025 to 2026 with progressive scale up over the following years. The cell chemistry will progress from NMC nickel manganese cobalt cathode chemistry that is the current standard for high energy density EV applications to LFP lithium iron phosphate which is gaining share globally for cost and safety reasons, and selected next generation chemistries over time.

Competitive position

Ola Cell Technologies competes in India's emerging battery cell manufacturing sector with Reliance New Energy which is building a battery cell gigafactory at Jamnagar in Gujarat, Rajesh Exports through Exide Industries and Amara Raja Energy and Mobility which are building cell capacity, Tata Group through Tata AutoComp and Agratas which is constructing a gigafactory in Gujarat and one in the United Kingdom, Suzuki Motor Corporation through Maruti Suzuki and selected partnerships, and other entrants under the PLI scheme. Globally Indian cell manufacturers will compete with Chinese leaders CATL, BYD, Gotion High Tech and EVE Energy, Korean LG Energy Solution, Samsung SDI and SK On, Japanese Panasonic, and Tesla. India's battery cell manufacturing is in the formative stage with most current EV cells imported. Ola Cell's advantage is the captive demand from Ola Electric vehicles which provides initial offtake, PLI scheme support, and integration with the broader Ola Electric vertical integration strategy. Its disadvantage is the very early stage of Indian cell manufacturing capability and the scale and technology depth of global competitors.

Key risks

Execution risk on very large gigafactory capital expenditure Technology evolution and capability gap versus global leaders Raw material supply chain for lithium and critical minerals

Outlook

Ola Cell Technologies was incorporated in 2021 as the battery cell manufacturing subsidiary of Ola Electric Mobility, which itself was established in 2017 by Bhavish Aggarwal who is also the co founder of Ola Cabs. The Ola Electric strategy from the outset has been vertical integration across battery management systems, electric motors and progressively cells, with the recognition that battery cells are the most expensive component of an electric vehicle and that indigenising cell manufacturing is critical to Indian EV sovereignty and to long term cost competitiveness. The Government of India announced the Production Linked Incentive scheme for Advanced Chemistry Cell manufacturing in May 2021, with a total outlay of ₹18,100 crore to support the establishment of 50 gigawatt hours per annum of cell manufacturing capacity in India. Ola Cell Technologies was awarded a tranche of the PLI scheme for 20 gigawatt hours per annum of cell manufacturing capacity. Other PLI awardees included Reliance New Energy for 20 gigawatt hours, Hyundai Motor Company subsidiary for 20 gigawatt hours and Rajesh Exports for 5 gigawatt hours. The Krishnagiri Tamil Nadu Gigafactory is being built in phases. Phase one targets approximately 1.4 gigawatt hours per annum of capacity with commercial production planned for 2024 to 2025. Subsequent phases scale capacity progressively to reach the 20 gigawatt hours target eligible for PLI incentives, with longer term plans extending to 100 gigawatt hours per annum as Ola Electric vehicle volumes scale and as external customer demand develops. The cell chemistry plan involves progression from NMC nickel manganese cobalt cathode chemistry, which is the current standard for high energy density EV applications, to LFP lithium iron phosphate which is gaining share globally for cost and safety reasons. Ola Electric has publicly indicated plans to develop in house cell technology under the project name Bharat Cell that would be designed specifically for Indian operating conditions including high temperature. The captive demand from Ola Electric vehicles provides initial offtake for cell production. Ola Electric is one of the leading Indian electric two wheeler manufacturers with market share competing with TVS iQube, Bajaj Chetak, Ather Energy and Hero MotoCorp Vida. The company has also announced plans for electric motorcycles and electric four wheelers including the upcoming Ola electric car platform. As Ola Electric vehicle volumes scale, the captive demand for cells grows in proportion, providing structural offtake for the Ola Cell production. Ola Electric Mobility, the parent company, completed an initial public offering in August 2024 raising approximately ₹6,145 crore and listing on the BSE and NSE. The IPO valued the company at approximately ₹35,000 crore at listing. The proceeds have been deployed in part for capital expenditure on the cell manufacturing capacity build at Krishnagiri, alongside vehicle manufacturing capacity expansion and R&D investment. Financial performance at the Ola Cell Technologies level is consolidated within Ola Electric Mobility. The parent company has reported revenue at over ₹5,000 crore in FY 2023-24 driven primarily by Ola S1 electric scooter sales, with continuing losses as it invests in capacity, R&D and brand building. The cell manufacturing business specifically is at pre commercialisation stage with capital expenditure phase still ongoing. Strategy from 2025 to 2030 is built on three themes. First, ramping cell production at the Krishnagiri Gigafactory through phased capacity addition as Ola Electric vehicle volumes scale and as external customer demand develops. Second, technology development including the Bharat Cell platform optimised for Indian conditions and the progressive shift from NMC to LFP and other chemistries. Third, securing raw material supply chain for lithium, nickel, cobalt and other critical minerals through international partnerships and selected investments in upstream mining and refining. Selective external customer development beyond Ola Electric is a longer horizon possibility. The regulatory environment for battery cell manufacturing is shaped by the Production Linked Incentive scheme for Advanced Chemistry Cell manufacturing administered by the Ministry of Heavy Industries, the Battery Waste Management Rules 2022 administered by the Central Pollution Control Board which create Extended Producer Responsibility obligations on battery producers, the BIS standards under AIS series for batteries used in electric vehicles, the Environment Impact Assessment notification 2006 for plant construction, state pollution control board permissions, and Companies Act 2013 governance for the corporate entity. International standards including IEC 62660 and UN 38.3 for transport apply to exported cells. Key risks include execution risk on the very large capital expenditure programme at Krishnagiri Gigafactory, technology risk as global cell chemistry continues to evolve rapidly and Indian capability is still catching up, raw material supply chain risk for lithium, nickel and cobalt where India is import dependent, broader Ola Electric vehicle volume trajectory risk if EV adoption disappoints relative to plan, competition from Reliance New Energy, Tata and global cell manufacturers, capital intensity that requires sustained funding rounds or debt financing, and the broader maturation of Indian electric vehicle and battery ecosystem. Management is integrated into Ola Electric Mobility under Bhavish Aggarwal as founder and chairman, with dedicated leadership for the cell manufacturing business under a chief operating officer for the gigafactory. Governance follows SEBI LODR requirements through the listed parent. ESG is intrinsic to the EV mission with battery cells being a critical enabler of the global energy transition. The company is expected to align with the Battery Waste Management Rules including collection and recycling obligations for end of life batteries.

KAMRIT point of view

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Disclaimer: This profile is compiled by KAMRIT Financial Services LLP for educational and benchmarking purposes only. It is not investment advice, a recommendation to buy or sell securities, or a solicitation. Stock data is provided by Yahoo Finance and may be delayed by up to 20 minutes. Company financial commentary draws on publicly available filings, exchange disclosures, and KAMRIT industry research. Readers should consult a SEBI-registered investment adviser before making investment decisions. KAMRIT is a financial services and compliance firm, not a SEBI-registered investment adviser.