Friday, February 23, 2024

Preparation to bid for Ola Electric’s lithium mining rights

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Ola Electric, one of the big electric two-wheeler companies, has planned to bid for the rights of mining of lithium. This may facilitate the company’s plans to manufacture batteries for Electric Vehicles (EV). Last year, the central government had started the first round of auction of rare minerals like lithium.

Total sales of cars in the country EV Its share is about two percent. The government has set a target of increasing it to 30 percent by 2030. The Reuters report quoted sources as saying, “Ola Electric has expressed interest in acquiring the rights to mine lithium.” Company executives have participated in meetings related to this auction.

The company will soon start manufacturing lithium ion cells. company The Gigafactory being built in Krishnagiri, Tamil Nadu will start operations from this month. This Gigafactory will provide employment to approximately 25,000 people when it reaches its full capacity. Bhavish Aggarwal, Founder of Ola Electric, recently gave this information at the Tamil Nadu Global Investors Meet held in Chennai. He had said, “Once this Gigafactory starts, Ola Electric will become the first company to manufacture Lithium Ion cells in the country.” The capacity of this Gigafactory will be 100 GWh. It will be started with a capacity of 5 GWh.

Ola Electric plans to raise $662 million through Initial Public Offering (IPO). In this, along with issuing new shares, there will also be sale of shares by the existing investor SoftBank of Japan. The company will use some part of the funds received from this IPO in the expansion of this Gigafactory. Last year, Ola Electric had secured new funding and this valued the company at $5.4 billion. Along with expanding its service network, the company has also planned to install a large number of new fast chargers. It has around 400 service centers and around 1,000 EV chargers. Ola Electric sales have increased rapidly in the last few months. The company had sold about 2.65 lakh units of electric scooters last year.

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