Electric vehicle maker Ola Electric has initiated plans to raise up to ₹2,000 crore by diluting a stake in its battery subsidiary, Ola Cell Technologies (OCT), according to people familiar with the development.
The fundraising exercise is part of Ola Electric’s broader effort to restructure operations and strengthen its balance sheet as the company works toward stabilising its business and accelerating its battery manufacturing ambitions.
The transaction could also help establish the market valuation of the battery unit, a key infrastructure asset within India’s electric mobility ecosystem.
As per news reports, the proposed stake dilution will play a crucial role in determining the valuation of Ola Cell Technologies, whose battery manufacturing operations are still in the early stages of scaling up.
The asset has reportedly attracted strong inbound interest from financial investors, including some leading sovereign wealth funds, reflecting growing global interest in India’s electric vehicle supply chain.
OCT owns the Tamil Nadu-based lithium-ion cell manufacturing facility, which currently has an operational capacity of 1.5 GWh. The company plans to scale this capacity to 6 GWh by the end of the current financial year.
The gigafactory, built with an upfront investment of around ₹3,500 crore, represents one of India’s most significant steps toward localising lithium-ion battery cell manufacturing, reducing reliance on imported battery cells.
Ola Cell Technologies also operates the Battery Innovation Centre, which houses over 200 engineers and executives recruited from global technology companies.
The centre has developed a portfolio of around 400 patents, spanning multiple battery chemistries such as NMC, LFP, LMFP and LMR, along with different cell formats including cylindrical, prismatic and solid-state batteries.
Among its notable developments is the dry electrode manufacturing process, considered a major innovation in lithium-ion battery production. Using this technology, the company has produced the 4680-format Bharat Cell, which is now being commercially manufactured at the gigafactory and has already been deployed in Ola Electric vehicles for more than six months.
Beyond electric two-wheelers, Ola is also positioning its battery technology for energy storage applications. As India accelerates its renewable energy transition, storage solutions are expected to play a crucial role in balancing electricity supply and demand.
With the country targeting 50% renewable energy capacity by 2030, energy storage systems will become essential to manage fluctuations in solar and wind power generation.
Ola has already introduced residential battery energy storage systems (BESS) and is exploring opportunities in commercial and industrial storage solutions.
Read more: Govt Looks to Cushion Airlines from Jet Fuel Price Shock Amid West Asia Conflict.
The proposed ₹2,000 crore fundraise for Ola Cell Technologies highlights Ola Electric’s strategy to strengthen its financial position while scaling domestic battery manufacturing capabilities. If successful, the stake sale could provide fresh capital to accelerate expansion at the gigafactory and position the company as a key player in India’s emerging EV battery and energy storage ecosystem.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Mar 17, 2026, 9:45 AM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
