Ola Electric founder and CEO Bhavish Aggarwal said that the company plans to roll out EVs with solid-state batteries by as soon as next year
Aggarwal added that the startup is okay with the Centre tapering off FAME subsidies to focus on PLI schemes
Earlier this month, SEBI officially greenlit Ola Electric’s INR 5,500+ Cr IPO
Electric vehicle (EV) maker Ola Electric
is reportedly working on developing solid-state batteries to power its electric scooters.
As per Reuters, Ola Electric founder and CEO Bhavish Aggarwal said that the company plans to roll out EVs with solid-state batteries by as soon as next year. “We are in very early stages of our experimentation on solid state batteries,” Aggarwal said reportedly.
The timeline will reportedly coincide with the commencement of commercial production at its battery production “gigafactory” in Tamil Nadu next year.
For the uninitiated, solid-state batteries offer a longer lifespan and faster charging compared with conventional lithium-ion batteries. However, EV makers veer away from solid-state batteries owing to issues such as high costs, constraints in raw material availability and intricate manufacturing process.
The CEO reportedly also said that the EV maker has already begun manufacturing the “more efficient” 4680 form of battery cells for testing purposes. These cells are said to be more efficient than their widely used 2170 counterparts but issues remain over scaling up their production.
As per the report, Aggarwal said that Ola Electric’s 4680 cells have received a key domestic certification, adding that the startup has invested $100 Mn to build an initial capacity to produce about 1.5 gigawatt hours (GWh) worth cells annually.
According to a separate report by Economic Times, Aggarwal said that the EV maker is “okay” with the Centre “tapering off” Faster Adoption and Manufacturing of Electric Vehicles (FAME) subsidies to focus on production-linked-incentive (PLI) schemes.
His comments come in the backdrop of reports that the government is expected to earmark a budgetary outlay of INR 10,000 Cr for the upcoming FAME-III scheme, which is expected to cover electric two, three, and four-wheelers in the country.
The comments come as Ola Electric continues its reign as the biggest player in the Indian electric two-wheeler space, in terms of sales, accounting for nearly 50% of the market. Additionally, the company has also rapidly scaled up its manufacturing capabilities and shored up partnership with key suppliers.
Earlier this month, the Securities and Exchange Board of India (SEBI) officially greenlit Ola Electric’s plans for an initial public offering (IPO). As per its draft red herring prospectus (DRHP) filed with the markets regulator in December 2023, the company’s public issue will comprise a fresh issuance of shares worth INR 5,500 Cr and an offer for sale (OFS) component of up to 9.51 Cr shares.
As it gears up for an IPO, the company has undertaken a company-wide restructuring exercise to cut costs and streamline operations. The EV player was also said to be planning to sack nearly 400-500 employees and also raised a debt of INR 100 Cr earlier this month in the run up to the IPO.
Ola Electric’s net loss widened 88% to INR 1,471.6 Cr in the financial year 2022-23 (FY23) compared to INR 783.4 Cr in the year ago period. Meanwhile, revenue from operations surged 605% year-on-year (YoY) to INR 2,630.9 Cr in the period under review.
