Ola Cell Technologies Identifies Key Suppliers For Lithium-Ion Battery Production

Ola Cell Technologies has reportedly identified essential raw material suppliers to support its lithium-ion battery production both in the short and long term.

The company has pinpointed prominent suppliers including Umicore, Epsilon Advanced Materials and Neogen as pivotal partners, Business Standard reported.

Following an initial assessment, Ola Cell Technologies narrowed down a list of 201 potential suppliers to 28 key suppliers for commercial offtake contracts. The selection criteria included technical capability, willingness to collaborate, a preference for Ola as a supplier, and an interest in localising production.

The company is committing approximately INR 2,249 Cr for the first phase of the factory, aiming to achieve a production capacity of 5 GWh. This initial phase is expected to be operational by October. Construction is currently underway for both phases of the project, with an ultimate target of 20 GWh capacity.

In the first segment of the initial phase, the factory will reach a capacity of 1.4 GWh, backed by an investment of around INR 1,226 Cr. The second segment will add another 3.6 GWh capacity, with an investment of approximately INR 1,023 Cr. Pilot trials are already in progress.

Looking ahead, Ola plans to further expand its capacity by adding 1.4 GWh by April 2025 in the second phase and an additional 13.6 GWh by the second quarter of 2026.

The company has outlined a budgetary capital expenditure of approximately INR 1,226 Cr for the second phase of its lithium-ion battery cell factory project. The capex for the third phase is yet to be finalised.

Ola Electric, holding a 99% stake in Ola Cell Technologies Pvt Ltd, reportedly has restarted the preparations for the public offering. The rival of Uber is planning to raise $500 Mn via the IPO at a valuation of about $5 Bn.

Ola Cabs plans to file draft IPO papers for approval with the Securities and Exchange Board of India (SEBI) within three months.

The company is reportedly planning to trim its workforce by 400-500 employees to streamline operations.

Meanwhile, despite experiencing a 35% month-on-month decline in vehicle registrations, dropping to 33,062 units, Ola Electric has sustained its leading market position. The company previously achieved its highest-ever monthly registrations in March, with over 50,000 units recorded.