Ola Electrics ambitious plans to produce its own lithium-ion battery cells have encountered significant challenges, delaying the company’s roadmap to battery self-reliance.
The electric vehicle manufacturer, known for its two-wheelers, had earlier announced its intention to manufacture advanced battery cells at its Gigafactory in India. However, technical setbacks and developmental hurdles have slowed down progress.
Sources familiar with the matter revealed that Ola is struggling to scale up cell production due to issues with equipment calibration, material consistency, and cell quality. These difficulties have raised concerns about meeting projected timelines.
Despite the delay, Ola Electric remains committed to localizing its battery supply chain. The company believes domestic cell production is critical to reducing EV costs and gaining long-term control over core technologies.
Ola had secured incentives under the Indian government’s Production Linked Incentive (PLI) scheme for advanced chemistry cells, making its battery project a strategic priority. Any prolonged delay could affect both market competitiveness and compliance with PLI targets.
Industry analysts suggest that while initial roadblocks are not uncommon in battery manufacturing, Ola’s ability to overcome these issues will be key to its future success in the increasingly competitive EV sector.
