Ola signs a contract with the government to produce batteries for electric vehicles

Electric vehicle manufacturer Ola Electric signed a letter of intent with the government for the production lithium-ion batteries.

This was reported to the Minister of Heavy Industry. Mahendra Nath Pandey on Thursday
, the company said.

The government is optimistic battery production domestically as it is the most important and expensive component of an electric vehicle.

Everything is currently electric vehicle manufacturers imported cages from China, South Korea and other countries.

The government has allocated Rs 18,000 crore as a manufacturing-related stimulus to the sector, where manufacturers such as Ola Electric can benefit.

New Energy, Hyundai Global Motors and other companies shortlisted for the subsidy program. These companies are also expected to sign an agreement with the government.

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“Today, 90% of the world’s cell production capacity is located in China, and in order to reverse this dependence on imports, local cell technology is key,” said Bhavish Aggarwal, co-founder and CEO of Ola.

He said the PLI scheme would help India become self-sufficient and localize the most important aspects of the EV value chain.

“At Ola, our roadmap for the development of cell technologies and manufacturing is actively moving forward; which makes us a stronger vertically integrated mobile company across all products, mobile services and technologies,” added Aggarwal.

Ola Electric stated on July 18. that it will invest about $500 million in a battery research and development center in Bangalore, which will become operational in August and will employ more than 500 engineers and PhD holders.

The company also said it had developed India’s first in-house developed lithium-ion battery.

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