Ola Electric to sell stake in battery division for ₹2,000cr
What's the story
Ola Electric is planning to raise up to ₹2,000 crore by selling a minority stake in its battery division, Ola Cell Technologies (OCT). The move comes as part of the company's restructuring efforts and attempts to improve its balance sheet. The funding will be sourced from financial investors. The company has also mandated investment banks Avendus and Motilal Oswal for the fundraising process.
Expansion
India's 1st gigafactory
OCT is home to India's first gigafactory, a lithium-ion cell manufacturing plant in Krishnagiri, Tamil Nadu. The facility has an operational capacity of 1.5GWh and plans to expand to 6GWh by the end of this fiscal year. This plant will cater not just to the two-wheeler segment but also energy storage products and systems across other sectors.
Market performance
Workforce reduction and declining sales
Earlier this year, Ola Electric announced a 5% workforce reduction as part of its restructuring efforts. The company is focusing on speed and discipline through increased automation in front-end operations. Despite these efforts, the company's sales have been declining for most of fiscal 2026, with competitors Ather Energy and traditional players TVS Motor and Bajaj Auto surpassing it in the market.
Technological advancements
A look at Battery Innovation Centre
Ola's Battery Innovation Centre, part of OCT, employs over 200 PhDs and researchers from multinational corporations. The center has developed nearly 400 patents across various cell chemistries and form factors. This, along with the gigafactory, makes Ola a unique player in battery storage systems. The firm has already launched residential BESS systems 'Shakti' and plans to enter commercial energy storage systems next.
Innovations
Breakthrough in lithium-ion battery production
Ola Electric has also developed a dry electrode manufacturing technology, a major breakthrough in lithium-ion battery production. The company has used this process to create the 4680-format Bharat Cell, which is now commercially produced at the gigafactory and used in Ola Electric vehicles for over six months. The company has also received a 20GWh allocation under the Indian government's Advanced Chemistry Cell (ACC) Production Linked Incentive scheme.