Ola Electric plans to sell stake in battery arm worth ₹2,000 crore to fund ETAuto’s expansion
Ola Electric has already introduced residential battery energy storage systems and plans to expand into commercial energy storage solutions.Ola Electric plans to raise up to ₹2,000 crore by selling its stake battery manufacturing Hand Ola Cell Technologies (OCT), as the electric two-wheeler maker looks to strengthen its balance sheet and accelerate the expansion of its domestic cell manufacturing capacity, sources familiar with the matter said. PTI.
Investment banks Avendus Capital and Motilal Oswal Financial Services have been mandated to manage the fundraising process. The stake sale is expected to attract interest from financial investors including sovereign wealth funds and will also help in establishing the market valuation of the company. battery manufacturing Property.
OCT operates a lithium-ion cell manufacturing plant in Tamil Nadu with an operational capacity of 1.5 GWh, which the company plans to expand to 6 GWh by the end of the current financial year. The facility is an important part of Ola Electric’s strategy to localize battery cell production in India and reduce dependence on imported cells as the country develops its electric vehicle supply chain.
The Gigafactory has been set up with an initial investment of ₹3,500 crore and is expected to support not only electric vehicles but also energy storage solutions across industries. As India moves towards increasing the share of renewable energy, battery storage systems are expected to play an important role in balancing power generation and consumption.
Ola Electric has already introduced residential battery energy storage systems and plans to expand into commercial energy storage solutions. The company’s battery research efforts are led by its Battery Innovation Center under OCT, which houses more than 200 engineers and researchers and has built a portfolio of approximately 400 patents covering multiple cell chemistries, including NMC, LFP, LMFP and LMR.
The planned stake reduction comes as the company works on restructuring its operations and strengthening its finances while growing its electric mobility and battery manufacturing ecosystem.
