Ola Electric Founder Bhavish Aggarwal announced on Saturday that the company intends to invest $100 million in the initial phase of constructing its Gigafactory for lithium-ion battery cell production. This is as per a report by the Economic Times.
Aggarwal reportedly mentioned that they are aiming for the IPO this year, although the exact timeline will depend on the process.
Ola Electric Founder Bhavish Aggarwal announced on Saturday that the company intends to invest $100 million in the initial phase of constructing its Gigafactory for lithium-ion battery cell production. This is as per a report by the Economic Times.
He also mentioned that Ola's electric scooters will incorporate these locally produced battery cells as soon as next year. Speaking to the Economic Times, he said, “Early next year, you can expect to see our own cells in our own products. We have some work to do around finalizing the production process and commercialization, but we are on our way.”
The company will use the investment to set up 1.5 GWh of cell manufacturing capacity under 'phase 1A' of the gigafactory. In phase B, the company intends to reportedly expand its capacity to 5 GWh. Aggarwal also added that recently, the company got certification from the Bureau of Indian Standards (BIS) for battery cells.
He mentioned that the company is reportedly expected to supply battery cells to third-party companies, including other electric two-wheeler manufacturers and renewable energy firms, from the new factory. Additionally, the company is developing solid-state batteries, the report adds.
Aggarwal said, as per the Economic Times, “About 35–40% of the two-wheeler EV cost goes into the battery. There is a fair amount of margin benefit that we will get as we start using our own cells.”
Ola Electric is all set to be an IPO. Recently, the Securities and Exchange Board of India (SEBI) approved Ola Electric’s IPO offering. The firm aims to raise Rs 7,250 crore from the IPO. It will be a combination of a Rs 5,500 crore fresh issue and an offer for sale of Rs 1,750 crore.
Ahead of the IPO, the company recently raised Rs 410 crore from EvolutionX Debt Capital via non-convertible debentures. Speaking to CNBC TV18 about the IPO’s timing, Aggarwal said, "We're definitely looking at the IPO this year, but exact timelines will depend on the process.”