Tuesday, March 21, 2023

Ola Electric signs MoU with Tamil Nadu; to invest Rs 7,614Cr to set up EV facility

Bhavish Aggarwal-led Electric vehicle maker Ola Electric has entered into a Memorandum of Understanding (MoU) with the Government of Tamil Nadu to enhance its production capabilities for two- and four-wheeled EVs as well as lithium-ion cells.

As part of the MoU, Ola Cell Technologies Pvt Ltd (OCT) and Ola Electric Technologies Pvt Ltd (OET), will be investing a combined total of Rs 7,614 crore, with OCT investing Rs 5114 crore and OET investing Rs 2500 crore over the next five years.

The development is expected to provide employment to as many as 3,111 people, according to the official statement.

The company aims to create an EV centre in the districts of Krishnagiri and Dharmapur in Tamil Nadu as part of the MoU, which will house state-of-the-art cell and EV production facilities, as well as vendor and supplier parks and a comprehensive ancillary ecosystem for EVs, according to a statement from the company.

Notably, It claims that this would be the world’s largest EV facility in a single location.

Ola CEO Bhavish Aggarwal stated that the company’s goal is to localize all critical components of the EV value chain and help to establish India as a global hub for EVs, adding that the EV hub would unify the entire EV ecosystem under one roof, making Ola a more vertically integrated mobility firm.

Last year, The EV maker unveiled its first Li-ion cell, the NMC 2170, at its Battery Innovation Center (BIC) in Bengaluru, Karnataka. The BIC has more than 200 unique and advanced lab equipment for all aspects of cell-related R&D, as well as the capacity to design, fabricate, and test complete battery packs under one roof.

The company plans to begin mass production of its cell at its upcoming EV hub this year, according to the statement.

Over the next decade, Ola Electric intends to focus on developing local supply chains for new materials and components such as motors, rare earth magnets, semiconductors, power electronics, lithium production, and electrode production.

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