Electric mobility company Ola Electric is planning a major restructuring move by raising up to ₹2,000 crore through the sale of a stake in its battery manufacturing arm, Ola Cell Technologies (OCT).

The fundraising process is reportedly being managed by investment banks Avendus Capital and Motilal Oswal Financial Services. The move aims to strengthen the company’s balance sheet while accelerating its battery manufacturing and energy storage plans in India.

Focus on expanding battery manufacturing

Ola Cell Technologies currently operates a lithium-ion battery cell manufacturing facility in Tamil Nadu with a production capacity of about 1.5 GWh.

The company plans to expand the facility’s capacity to 6 GWh by the end of the current financial year. The proposed stake sale will also help determine the market valuation of the battery manufacturing project, which is still being finalized.

According to reports, several financial investors and sovereign wealth funds have shown interest in the project.

Gigafactory seen as a key step for India

The battery facility, often referred to as a Gigafactory, was built with an initial investment of around ₹3,500 crore. Industry experts consider it an important step toward localizing battery cell manufacturing in India, reducing dependence on imports and strengthening the domestic electric vehicle ecosystem.

The plant is expected to produce energy storage products and battery systems not only for electric two-wheelers but also for other sectors.

Strong research and innovation pipeline

Research and development activities for the battery unit are carried out at the Ola Battery Innovation Center, which operates under Ola Cell Technologies.

The center reportedly employs more than 200 researchers and engineers and has developed a portfolio of around 400 patents.

The research focuses on several battery chemistries, including:

• Nickel-Manganese-Cobalt (NMC)

• Lithium-Iron-Phosphate (LFP)

• Lithium-Manganese-Iron-Phosphate (LMFP)

• Lithium-Manganese-Rich (LMR)

The company is also experimenting with multiple battery formats such as cylindrical, prismatic, and solid-state cells.

Growing demand for energy storage

India’s push toward renewable energy is expected to significantly increase demand for battery storage solutions. The country has set a target to generate 50% of its electricity from renewable sources by 2030.

Because renewable sources like solar and wind are intermittent, energy storage systems are crucial for balancing electricity production and consumption.