Ola Electric Initiates Fundraise For Battery Arm As Gigafactory Scales To 6 GWh

Ola Electric is planning to raise up to ₹2,000 crore by selling a stake in its battery subsidiary, Ola Cell Technologies (OCT), sources told reporters. The company has appointed investment banks Avendus and Motilal Oswal to manage the fundraising process, which will help strengthen its balance sheet as it continues operational restructuring and business turnaround efforts.

OCT operates a Tamil Nadu-based lithium-ion cell manufacturing plant with a current capacity of 1.5 GWh and plans to scale production to 6 GWh by the end of the financial year. The plant, built with an upfront investment of ₹3,500 crore, is central to India’s efforts to localize battery production and reduce dependence on imported cells while supporting the domestic electric vehicle (EV) ecosystem.

The stake sale is expected to determine the market valuation of this critical battery infrastructure, which has already attracted interest from financial investors, including leading sovereign wealth funds. Beyond two-wheelers, the plant will support energy storage systems across multiple industries.

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OCT also houses Ola’s Battery Innovation Centre, employing over 200 professionals from global corporations and maintaining a portfolio of nearly 400 patents. Research spans multiple cell chemistries, including NMC, LFP, LMFP, and LMR, and different formats such as cylindrical, prismatic, and solid-state cells. The company has also developed dry electrode technology, a significant innovation in lithium-ion battery production, enabling commercial-scale manufacturing of the 4680-format Bharat Cell, which has already been deployed in Ola Electric vehicles.

India’s push toward 50% renewable energy by 2030 underscores the importance of battery storage, as a large portion of electricity generated from solar, wind, hydro, and coal must pass through storage systems for optimal utilization. Ola has launched residential battery energy storage systems (BESS) and plans to expand into commercial energy storage solutions to address this gap.

By raising funds through the sale of OCT stakes, Ola Electric aims to accelerate its manufacturing expansion, technological innovation, and entry into broader energy storage markets, positioning itself as a key player in India’s rapidly growing EV and renewable energy sectors.

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