Ola says it will begin mass production of the cells from the hub later this year.
India’s Ola Electric Mobility Pvt. The plan is to build the world’s largest electric vehicle hub with an investment of 76.1 billion rupees ($920 million) to localize the supply chain for clean transport.
The hub, spread over 2,000 acres (809 hectares) in Tamil Nadu, will be used to manufacture electric two-wheelers, cars and battery cells, apart from housing vendor and supplier parks, Ola said in a statement on Friday. The Indian startup will begin mass production of cells from the hub later this year.
Localization of critical elements of the EV supply chain such as batteries will make EVs more affordable, with India having only a fraction of the raw materials needed to meet domestic demand for lithium-ion batteries – projected by CRISIL to grow 100 times by 2030 Besides Ola, billionaire Mukesh Ambani’s Reliance Industries Ltd and bullion refiner Rajesh Exports Ltd will receive incentives under a $2.3 billion government program to support advanced battery cell development.
Building a reliable supply chain could help Ola overcome the problems it faces in producing electric vehicles. The Bengaluru-based company has recalled 1,441 electric scooters after a fire broke out in one of the vehicles produced in the batch. Ola scooter deliveries were initially delayed as India relies heavily on imported parts, the supply of which was disrupted by a global chip shortage.
Ola last year unveiled its first lithium-ion cell developed at its Battery Innovation Center in Bengaluru, which saw an investment of $500 million, the startup said in the statement. Over the next decade, Ola Motor will focus on developing local supply chains for materials and components such as rare-earth magnets, semiconductors, lithium processing and electrode production from minerals such as graphite and nickel.
– With assistance from Sarita Rai.
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