Bengaluru, July 1, 2024 – Ola Electric, the Indian electric two-wheeler manufacturer backed by SoftBank Group, has announced plans to develop solid-state batteries and introduce its battery cells in its electric scooters as early as next year.

According to Bhavish Aggarwal, the founder and chairman of Ola Electric, the company is in the “very early stages of experimentation on solid-state batteries.” Solid-state batteries are seen as a promising advancement over conventional lithium-ion batteries, offering potential improvements in safety, lifespan, and charging capabilities.

Ola Electric is also working on the more energy-dense 4680 form of battery cells, which could potentially replace the widely used 2170 cells currently used in its electric scooters. The company has invested USD 100 million in the first phase of its upcoming “gigafactory” in Tamil Nadu, which will have an initial capacity of 1.5 gigawatt-hours (GWh) of cell manufacturing.

“Early next year, you can expect to see our cells in our own products,” Aggarwal said, adding that the company has completed the necessary certifications from the Bureau of Indian Standards (BIS) for the battery cells.

Localizing cell production is a key focus for Ola Electric, as Aggarwal noted that “about 35-40 percent of the two-wheeler EV cost goes into the battery.” The company aims to benefit from the “margin benefit” of using its cells.

Ola Electric plans to use a portion of the proceeds from its upcoming initial public offering (IPO) to expand the gigafactory’s capacity from 5 GWh to 6.4 GWh by the fiscal year 2025-26.

The announcement comes as Ola Electric, one of the largest players in the Indian electric two-wheeler market, continues to make strides in battery technology and manufacturing localization. By developing solid-state batteries and in-house cell production, the company aims to drive down the upfront costs of electric vehicles and strengthen its position in the rapidly growing Indian EV market.

Ola Electric has been at the forefront of the electric two-wheeler revolution in India. The company’s flagship S1 and S1 Pro electric scooters have become popular choices among Indian consumers seeking more sustainable mobility options. Last August, Ola Electric raised USD 240 million from the State Bank of India to fund the construction of its battery cell gigafactory, as part of a USD 384 million financing round that also saw participation from Singapore’s sovereign wealth fund Temasek.

The company’s ambitions to develop solid-state batteries and manufacture its battery cells align with the Indian government’s push for greater self-reliance in electric vehicle manufacturing. With the launch of the production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery manufacturing, the government has encouraged domestic companies to invest in and localize critical EV components. Ola Electric’s latest announcements underscore its commitment to capitalize on this opportunity and strengthen its position in the rapidly evolving Indian electric mobility landscape.