In an attempt to boost its electric vehicle (EV) business in India, Bhavish Aggarwal-led Ola Electrics is all set to invest more than Rs 7,600 crore to expand its future factory at Pochampalli in Tamil Nadu. This will help the company to focus on manufacturing EVs, their batteries and components. The Bengaluru-headquartered start-up has inked a memorandum of understanding (MoU) with the MK Stalin-led Tamil Nadu government.
Multiple media sources reported that the car aggregator is planning to build a four-wheeler EV plant and an advanced cell chemistry plant (ACC) in the state. The latter will be developed under the Tamil Nadu government’s PLI (production-linked incentive) scheme.
The prospective plants are expected to generate nearly 3,000 jobs in the next five years.
Among the entire 7,600 crore, the company will spend Rs 5,114 crore to develop the ACC. The rest will be invested in the four-wheeler plant. The latter is expected to develop 1.4 lakh units every year.
“Ola will set up the world’s largest EV hub with integrated 2W, car and lithium cell Giga factories in Tamil Nadu. Signed MoU with Tamil Nadu today. Thanks to Hon. CM @mkstalin for the support and partnership of the TN govt! Accelerating India’s transition to full electric.,” Aggarwal wrote on Twitter.
Ola will setup the worlds largest EV hub with integrated 2W, Car and Lithium cell Gigafactories in Tamil Nadu.— Bhavish Aggarwal (@bhash) February 18, 2023
Signed MoU with Tamil Nadu today. Thanks to Hon. CM @mkstalin for the support and partnership of the TN govt!
Accelerating India’s transition to full electric! 🇮🇳 pic.twitter.com/ToV2W2MOsx
“At Ola, our aim is to localise all critical elements of the EV value chain. Ola’s EV Hub would bring the entire EV ecosystem under one roof making us a much stronger vertically integrated mobility company across 2Ws, 4Ws and cells,” he claimed in a press statement.