Ola founder and CEO Bhavish Aggarwal.
Credit: PTI Photo
Chennai: Home-grown electric vehicle major Ola on Sunday said its Giga Factory being built in Tamil Nadu’s Krishnagiri district will become operational next month, becoming the first company in the country to produce lithium-ion cells.
Ola Electric CEO Bhavish Aggarwal, while addressing the third edition of Tamil Nadu Global Investors Meet, said the Giga Factory will mark a key milestone in India’s transition to electric vehicles. Ola began construction on its Future Factory in 2021 with an investment of Rs 2,400 crores in Pochampalli in Krishnagiri district, had in February 2023 signed a Memorandum of Understanding (MoU) with the Tamil Nadu government to expand the factory with an additional investment of Rs 7,614 crore.
Of Rs 7,614 crores, as much as Rs 5,114 crores will go into the cell manufacturing plant, while the remaining Rs 2,500 crores has been earmarked for the four-wheeler plant with a capacity to manufacture 1.4 lakh units per annum.
Aggarwal said Ola’s EV hub, when completely operational, will have a workforce of 25,000 people and construction on the Giga Factory with a capacity of 100 MW began in June last year and will be made operational in February.
“When it is operational next month, we (Ola) will be the first to
manufacture lithium ion cells in India. This will mark a key milestone in India’s transition to EVs,” Aggarwal said. The company’s CEO also said the Future Factory, which employs about 4,000 women for now, has set a benchmark in the industry.
At full scale, Ola will produce about 10 million units a year, Aggarwal said, adding that the company will also house its vendors and supplier within the premises.
According to data released by the government, Tamil Nadu accounts for over 40 per cent of total planned investments in the EV sector with not just EV firms but battery manufacturers like BYD, Grinntech, Lucas-TVS, and Li Energy setting up their units in the state. The state believes the new policy will attract more players in the EV sector to set their shops in Tamil Nadu.
Besides Ola, Ather, and TVS Motor Company manufacture electric two-wheelers from their plants in and around Hosur. Simple Energy is building a massive plant including a testing track in Dharmapuri district, while Sri Varu Motors and another start-up Bharat Alt Fuel (BAF) has pledged to invest Rs 250 crore in the region. Ampere has already invested Rs 700 crore in its manufacturing unit in Ranipet in Tamil Nadu.