Ola Electric's Gigafactory: Powering India's EV Future with In-House Innovation

Sarah J4 min read

Ola Electric is spearheading India's electric vehicle (EV) revolution with its state-of-the-art Gigafactory located in the Krishnagiri district of Tamil Nadu, on the outskirts of Bangalore. This expansive 115-acre facility is dedicated to the manufacturing of lithium-ion cells and is touted as India's first Gigafactory.

India's First Gigafactory: A Hub of Complexity and Cleanliness The Ola Gigafactory is an extremely complex manufacturing facility, requiring exceptionally clean rooms where even moisture, sweat, hair, or dirt cannot enter the atmosphere. This level of precision is comparable to semiconductor manufacturing processes, making it one of the most intricate in the world.

The Heart of EVs: The 4680 Lithium-Ion Cell At the core of Ola Electric's ambition is the 4680 lithium-ion cell, described as "the heart of EVs". Beyond electric vehicles, this small cell is envisioned as the "energy platform of the future," capable of powering diverse applications such as drones, humanoids, home energy storage devices (like inverters replacing lead-acid batteries), and even grid storage alongside solar plants.

Impact on Ola Electric's Products and Margins The 4680 cells are set to power Ola scooters this quarter (Q2: July-September), with the first products delivered to customers during Navratri. Manufacturing these cells in-house will significantly improve Ola Electric's margins over the next 12 months, as they move away from importing this crucial component. All upcoming Ola products, including Gen 3 scooters, motorbikes, and future offerings, will utilise the 4680 cells. In-house cell production offers several strategic advantages:

Technology Control: Ola gains control over the technology, which defines product performance, including charging speeds, range, and thermal performance.
Supply Chain Resilience: It reduces dependence on external suppliers or geopolitical factors that might throttle supplies.
Faster Development & Customisation: The ability to build the next generation of cell technology faster and customise cells for different products, such as motorcycles or performance bikes, is enhanced.
All cells produced are BIS certified.

A Glimpse into the Manufacturing Process The Gigafactory process is highly automated and precise:

All-Women Workforce: A notable highlight is that the Gigafactory is an all-women facility, currently employing around 500 women and scaling up to 1,000. These women operate complex machines, engaging in high-skill level jobs rather than manual labour. Many are engineering graduates.
Cathode Production: The process begins with cathode making, where raw materials are processed and wound into electrode rolls. These raw materials are sourced from multiple countries, including China, Japan, Korea, and Australia (a major producer of lithium and manganese).
Slitting: Large electrode rolls are then precisely slit into smaller "daughter rolls" with micron-level accuracy.
Assembly and Jelly Roll Creation: In the assembly process, the cathode, anode, and a separator are combined into a "jelly roll".
Multi-Stage Production: Making a cell involves almost 20 more processes after the jelly roll stage. This includes flattening sides, intricate welding to attach the lid, and taping sides to ensure vacuum and air-proofing.
Electrolyte Filling and Charging: The cells are initially open for electrolyte filling, after which they are sealed with a plug and undergo a 10-day charge/discharge "hibernation" cycle.
Quality Assurance with AI: Every single cell undergoes an X-ray inspection, with AI imaging used to detect any deviations in critical parameters like the gap between cathode and anode layers. This ensures micron-level accuracy and is essential for the factory's operation.
Production Capacity: The factory boasts a throughput of 1 to 2 lakh cells per day. Approximately 40 of these cells go into one scooter battery pack.
Investment: The 5 GWh capacity of the Gigafactory will require an investment of approximately $400 million, much of which has already been invested through equity and pre-IPO debt.

Moving Towards Rare Earth-Free Motors Ola Electric is also working on a rare earth-free motor, specifically a ferrite magnet motor. This initiative comes as China holds a near monopoly on rare earths, which are essential for current motor technologies. Ola began this journey two years ago and is ready for production next quarter, aiming to de-risk its supply chain from rare earth dependency. The long-term direction for motor technology is to reduce or eliminate magnets by using copper wire with electricity to create electromagnets. In the short term, Ola has already diversified its magnet sources across multiple countries and produces motors in-house, mitigating immediate production impacts.

Market Dynamics and Future Outlook The EV market in India has seen an aggressive ramp-up, with scooter adoption growing from almost zero to about 20% in just four years. While currently in a phase of consolidation, Ola anticipates another steep ramp-up driven by technology progression, cost reduction, and improved range and charging speeds.

Ola Electric entered the market later than some rivals but was the first to scale, building significant vertical integration, factory scale, and consumer mind share. Ola has sold 1.2 million two-wheelers to date, significantly outpacing its closest competitor. The company has shifted its strategy towards profitable growth, focusing on deep vertical integration, technology development, and a "DNA of technology" to build good products and ensure profitability. Ola aims to achieve a 25-30% market share in two-wheeler EVs with high margins.

Bhavish Aggarwal, founder of Ola Electric, states that their vision for the cell Gigafactory extends beyond their own products; it is intended to be an energy platform for India, with cells potentially supplied to other startups and companies for drones, robotics, energy storage, and other automotive products.

Aggarwal draws inspiration from global EV leaders like Tesla and BYD for their vertical integration, high margins, and product differentiation, as well as cell companies like CATL and LG for their world-class processes and innovation. He believes it's "never too late" for India to start and scale up in these frontier technologies, aiming to "leapfrog" existing advancements.

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Hyderabad-based Skyroot Aerospace successfully launched Vikram-1, India’s first privately developed orbital launch vehicle, from the Satish Dhawan Space Centre in Sriharikota on July 18, 2026. The rocket lifted off at 12:05:30 p.m. Indian Standard Time as part of Mission Aagaman, meaning “arrival.”Around 15 minutes after launch, Vikram-1 successfully deployed payloads into a low Earth orbit at an altitude of approximately 450 kilometres. ISRO confirmed that two satellites—Skyroot’s SCOPE and a satellite from Grahaa Space—were injected into orbit. Other payloads remained attached to the upper stage to conduct in-orbit experiments.India has operated orbital launch vehicles through the Indian Space Research Organisation since the successful launch of the Rohini satellite aboard SLV-3 in 1980. The significance of Mission Aagaman is that Vikram-1 was developed and launched by a private Indian company, although ISRO and the Indian National Space Promotion and Authorisation Centre provided facilities, technical support, safety oversight and regulatory clearances.The Vikram-1 RocketVikram-1 is a small-satellite launch vehicle standing approximately 22 metres tall. It is designed to carry payloads of up to 350 kilograms into low Earth orbit.The four-stage vehicle consists of three solid-fuel stages and a liquid-fuel orbital adjustment module. Its upper stage is powered by a 3D-printed liquid engine and is designed to support precise orbital deployment. The rocket also incorporates carbon-composite structures, avionics and thermal-protection technologies developed by Skyroot.The Vikram launch-vehicle series is named after Vikram Sarabhai, the scientist widely regarded as the father of India’s space programme.Skyroot is positioning Vikram-1 as a dedicated and rideshare launcher for small satellites requiring customised orbital deployment. The company argues that such missions can provide customers with greater control over launch timing and orbital destination than travelling as secondary payloads on larger rockets.Payloads and ExperimentsThe mission carried multiple customer payloads and in-orbit experiments from Indian and international organisations.ISRO has officially confirmed that two satellites, SCOPE and Grahaa, were successfully placed into low Earth orbit. The remaining payloads were carried on the upper stage for in-orbit experiments.Before launch, the announced mission manifest included:Skyroot’s SCOPE satelliteGrahaa Space’s SOLARAS S3 satelliteA technology demonstration from German space company DCUBEDEmbrace, a robotic arm experiment developed by Cosmoserve Space for orbital-debris captureThe announced manifest also included symbolic payloads: a floral-shaped artwork called Cosmic Bloom and a miniature 18-karat gold rocket honouring Indian scientific figures C.V. Raman, Vikram Sarabhai and A.P.J. Abdul Kalam. These items were listed before launch, but official post-launch statements have not separately confirmed the operational status of every individual experiment.Mission Aagaman was intended to test Vikram-1’s propulsion, avionics, telemetry, stage separation, guidance, navigation and control systems under actual flight conditions. Skyroot described the flight as the first of a planned series of development missions ahead of routine commercial operations.From Vikram-S to Vikram-1Skyroot Aerospace was founded in 2018 by former ISRO engineers Pawan Kumar Chandana and Naga Bharath Daka.The company completed its first spaceflight in November 2022 with Vikram-S, a suborbital technology-demonstration rocket launched under Mission Prarambh. That flight made Skyroot the first private Indian company to launch a rocket into space from Indian soil, although Vikram-S did not enter orbit.Vikram-1 represents a significantly more demanding technical achievement. Reaching orbit requires a rocket not only to climb above Earth’s atmosphere but also to accelerate its payload to the horizontal velocity needed to remain in orbit. The vehicle must complete a carefully timed sequence of propulsion, stage-separation and navigation operations before deploying its payloads.India opened more of its space sector to private participation in 2020 and subsequently established a framework through IN-SPACe for private companies to access ISRO facilities and technical expertise. For Vikram-1, ISRO supported solid-motor casting and testing, liquid-engine testing, vehicle integration, trajectory analysis and launch-pad operations.Reaction and Next StepsPrime Minister Narendra Modi called the successful launch a defining moment in India’s space journey. He said growing private-sector participation was opening new frontiers and accelerating innovation, adding that the achievement would encourage young people to “dream bigger and innovate fearlessly.”Skyroot said Mission Aagaman was a test flight and that it expects to conduct additional development flights before beginning routine commercial launches. The company ultimately aims to provide frequent, dedicated launch services for small satellites.The achievement does not replace India’s longstanding government space-launch capability. Instead, it expands the country’s space ecosystem by demonstrating that an Indian private company can independently develop an orbital-class launch vehicle and successfully place satellites into orbit with institutional support from ISRO and IN-SPACe.Sources: Indian Space Research Organisation, Prime Minister’s Office of India, Reuters, Skyroot Aerospace and Space.com.Image courtesy: Skyroot AerospaceSEINET is an execution focused network for operators building partnerships and growth in EU-India-UK corridor in four key clusters - Space, Deep Tech, Defense and Energy. Apply to sign up www.startupeuropeindia.net

Sat, Jul 18, 2026