Lithium ion batteries cost 35–40 percent of the total cost of an e-scooter.
Ola Electric plans to set up a cell manufacturing factory. If this happens, it will be the first Indian company. Currently, the cell is imported.
According to experts, the cost of lithium-ion battery will be 35-40 percent of the total cost of an e-scooter and the cost of a cell in a battery is about 70 percent. Hence, Ola will manufacture the batteries at the upcoming integrated integrated plant in Bangalore. According to the news published in Business Standard, initially, Ola will import the cell for Lithium Ion battery from South Korea, which will be used in its upcoming e-scooter. A senior member of the Ola Electric leadership team confirmed the decision as Business Standard. He said, ‘Yes, we will produce the cell. Batteries will be manufactured in our proposed in house factory.
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China, Japan and South Korea ruleSouth Korea, China and Japan account for about 85 percent of global cell production. Major companies making the cell include LG Chemicals, Panasonic, BYD, Samsung and others. Most of them also make batteries. All companies assemble lithium ion batteries, including Ather Energy, a scooter maker and a joint venture between Suzuki, Toshiba and Dentsu. Other companies include Exide, Sun Mobility, Exicom and Okaya.
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Mahindra & Mahindra has also announced
In the field of cell making, Mahindra & Mahindra announced that it is entering into an agreement with LG Chemicals to make a special cell for the Indian market. Significantly, the manufacturing of SAIL in India is a major part of the government’s self-reliant India campaign. In order to provide financial incentives to potential SAIL manufacturers, a Production Promotion Scheme (PLI) has already been announced. The government believes that this will save foreign exchange significantly and at the same time it will reduce the cost of the battery.
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The company is investing 24 crores rupees
The company is investing Rs 2,400 crore in setting up the plant. In the first phase (June 2021), it will build a capacity to manufacture two million two-wheelers. From next year, this figure will be increased to 1 lakh.