Ola Electric is developing a strategy with the help of stakeholders to guarantee a consistent supply of the materials used to make lithium battery cells. The company has chosen to produce the cell and maintain control over its innovation, which are essential parts for creating the battery. It is the only two-wheeler electric vehicle (EV) player to make this decision.
Ola dispelled the idea that China controls important raw resources, such as lithium, nickel, and cobalt, and that India may find it challenging to play a major role in EVs.
“There is a dearth of information on raw materials, which go into the construction of the battery cell, We erroneously believe that China regulates the flow of these minerals, but this is untrue. Given that India is developing into a significant EV market, I am optimistic that the Indian ecosystem will receive its due share of raw materials. Every mine and processing plant is focusing on India”, said Bhavish Aggarwal, the founder of Ola Electric.
For instance, the biggest sources of lithium for batteries worldwide are Australia and South America. China has control over the midstream but not the mines. So, a lot of lithium is sent to China where it is processed into hydroxides and carbonates that are utilized in the production of cell manufacturers.
Different options are being considered. India has the potential to work strategically with nations like Australia. Aggarwal claimed to be constructing this ecosystem.
He emphasized that battery-grade lithium will be a valuable trade good between Australia and India should their free trade agreement (FTA) be finalized.
On this, the administration is already actively engaged. One platform is the state-owned mining business Khanij Bidesh India (KABIL), a partnership between three PSUs to guarantee the supply of essential minerals. Lithium reserves exist even in India, but they have not yet been extracted. The administration is serious as well and is adopting a strategic perspective.
India has enough raw materials to produce graphite. Ola Electric is attempting to develop battery-grade graphite by speaking with the steel sector.