OLA Group to Set-up Lithium-ion Cell and EV Car Pant in Tamil Nadu

Share Us

551
OLA Group to Set-up Lithium-ion Cell and EV Car Pant in Tamil Nadu
18 Feb 2023
6 min read

News Synopsis

In a significant development for the Indian electric vehicle industry, the OLA Group has announced plans to establish a new lithium-ion cell and electric vehicle (EV) car plant in the southern Indian state of Tamil Nadu. The facility is expected to be one of the largest of its kind in the world, with a planned annual capacity of over 10 Million lithium-ion cells and a production capacity of more than 1 Million electric vehicles EVs per year.

The OLA Group, which includes ride-hailing firm OLA and electric scooter manufacturer OLA Electric, has signed a Memorandum of Understanding MoU with the Government of Tamil Nadu to invest approximately $2 Billion in the new factory. The plant is expected to create more than 10,000 jobs in the region, both directly and indirectly.

OLA's investment in the new facility is part of its ambitious plan to establish a complete EV ecosystem in India. The company is already working on developing charging infrastructure and battery-swapping solutions for electric vehicles in the country. The new plant will reduce the country's reliance on imported lithium-ion cells, which account for a significant portion of the cost of EVs in India.

The announcement has been widely applauded by industry experts and government officials. Tamil Nadu Chief Minister M.K. Stalin praised the project as a "milestone development," stating that it would make a significant contribution to the state's economic growth and create new job opportunities. The plant is expected to commence operations by mid-2023, and the first OLA-branded electric vehicle is expected to roll out from the facility by 2024.

The establishment of the new factory is a significant step forward for India's transition to electric mobility. The country has set a target of achieving 30% electric vehicle penetration by 2030, and the OLA Group's investment in the Tamil Nadu plant will undoubtedly aid in the achievement of this target. The plant is also expected to contribute significantly to the reduction of India's carbon footprint, which is a pressing issue for the country, as it is one of the largest emitters of greenhouse gases globally.

The Ola Electric Mobility group companies, Ola Cell Technologies Private Ltd and Ola Electric Technologies Private Ltd, would build a plant for lithium-ion batteries and another for electric vehicles, respectively, according to the Tamil Nadu Government.

The Krishnagiri district would be the site of the two plants. The Tamil Nadu government had revealed its New EV Sector Policy.

"Ola will set up the world's largest EV hub with integrated 2W, car, and lithium cell Gigafactories in Tamil Nadu. Signed MoU with Tamil Nadu today. Thanks to Hon.CM@mkstalin for the support and partnership of the TN govt! Accelerating India's transition to full electric!" Co-founder of OLA Group- Bhavish Aggarwal tweeted.

Advanced electric vehicles produced at the OLA Group Futurefactory- the biggest, most technologically sophisticated, and sustainable two-wheeler factory in the world, are intended to help the global transition to sustainable mobility.

The private company Ola Electric Mobility Private Limited was established on February 3, 2017. Bhavish Aggarwal, Krishnamurthy Venugopala Tenneti, Jaime Ardila Gomez, Subbu Venkata Rama Behara, Prabhakar Bapusaheb Patil, and Amit Anchal are Directors of Ola Electric Mobility Private Limited.

TWN Special