Ola inked PLI Scheme Agreement in order to develop Made-In-India Lithium-ion Battery Cells

Ola Electric inked a Production Linked Incentive (PLI) offered by the Government of India in order to manufacture EV battery cells locally. The prominent EV maker is planning to begin mass production of Lithium-ion cells in India by early 2023.?

Ola declared that its NMC 2170, the indigenously developed lithium-ion cell, will be developed domestically under the PLI agreement. This cell, which will serve as the cornerstone of the inked contract, will be mass produced at Ola's Gigafactory located in Krishnagiri, Tamil Nadu.??

Previously, the ministry declared the names of the four selected bidders in March 2022, which include Rajesh Exports, Hyundai Global Motors Company, Ola Electric Mobility, and Reliance New Energy. The four companies will leverage the benefits under the PLI scheme for Advanced Chemistry Cell (ACC) battery storage. According to the information, a total of 50GWh of battery capacity is allocated to the companies. Additionally, the selected companies will also receive an investment of around US$ 181 billion under the PLI scheme to facilitate EV battery cell production.?

According to Ola, the cathode side of these cells uses lithium nickel manganese cobalt oxide (NMC), while the anode side uses silicon and graphite. The essential part, which we realize is a bit technical, is Ola's claim that these cells were created with "indigenous conditions" in mind. CEO and Founder of Ola, Bhavish Aggarwal, said, “Today, 90% of global capacity for cell manufacturing is in China, and to reverse this import dependency locally manufactured cell technology is key. The ACC PLI scheme will be instrumental in making India self-reliant and localizing the most critical aspects of the EV value chain. At Ola, our roadmap to develop cell technology and manufacturing is vigorously progressing, making us a stronger vertically integrated mobility company across – products, mobility services, and tech.”?

The Indian government has allotted the bandwidth of 20GWh (gigawatt hour) to the EV maker. Recognizing the potential of the lithium-ion battery industry, Ola is making significant efforts to leverage these grants in order to add robust technologies to its portfolio for the future EV line-up. The demand for lithium-ion batteries is steadily rising because these batteries are ideal for a variety of applications, including heavy-duty vehicles, electronic gadgets, etc. Astute Analytica estimates that the global Lithium-ion Battery Market will grow to US$ 1,85,040.3 Mn by 2027 from US$ 60,385.6 Mn in 2021.??