Ola Electric is expanding the addressable market for its in-house battery cells beyond electric vehicles and conventional energy storage, with the company entering into MoUs covering defence and UAV applications, near-space constellation platforms and utility-scale energy storage.
The company said in its Q1FY27 shareholders’ letter that these new demand pools could create an additional growth engine for its cell business as it moves from technology development and validation to commercial-scale manufacturing.
Defence and UAV applications require high energy density, reliability, safety and domestic supply security, while near-space constellation platforms extend the potential use of Ola’s cells into advanced aerospace applications.
Ola Electric said these sectors are strategically important as domestic capabilities in critical battery technology support the broader objective of Atmanirbhar Bharat and greater self-reliance.
The MoUs broaden the application base for Ola cells beyond electric two-wheelers and conventional energy storage, spanning advanced mobility, defence-adjacent applications, aerospace and energy infrastructure.
Gigafactory capacity to reach 6 GWh
Ola Electric said its cell business is entering a more commercial phase after moving from developing and validating its technology to deploying cells in its vehicles and expanding its chemistry roadmap.
The company’s Gigafactory is expected to reach an operational capacity of 6 GWh by September. The capacity will support greater integration of its own cells across its vehicle portfolio while enabling the company to cater to external demand from energy storage and specialised applications.
“The focus is now on putting this manufacturing capacity to work across multiple demand pools,” Ola Electric said.
Two-track cell roadmap
Ola Electric’s own-cell integration is progressing along a two-track roadmap.
The 4680 NMC Bharat Cell has been commercially deployed across the company’s performance two-wheeler portfolio. Ola Electric said the cell has demonstrated strong field performance and received overwhelmingly positive customer feedback since being integrated into its vehicles.
Meanwhile, the 46100 LFP cell has received BIS certification and is vehicle-ready.
The company plans to progressively integrate LFP cells into vehicles with battery capacities below 4 kWh. Ola Electric expects the lower battery bill of materials associated with LFP technology to support greater affordability across its mass-market scooter portfolio.
Energy storage emerges as new demand engine
Energy storage is emerging as another major demand driver for Ola Electric’s cell business.
The company’s Shakti platform targets home and commercial energy storage, including residential power backup and applications for small businesses and commercial establishments.
Mahashakti will take the platform into commercial, industrial and utility-scale storage. Ola Electric plans to launch Mahashakti on August 15.
Designed and manufactured in India, Mahashakti will target applications including renewable-energy integration, industrial power, grid infrastructure and data centres.
Ola Electric sees the opportunity in a market where energy storage is becoming increasingly important for scaling renewable energy and improving power-grid reliability.
Focus shifts to profitability
Ola Electric said its next phase will focus on converting the capabilities developed over the past year into sustainable business outcomes.
The company’s priorities include reducing its steady-state cost base, scaling volumes without recreating its earlier cost structure, deepening vertical integration and translating these advantages into margin expansion and lower cash burn.
In its automotive business, Ola Electric plans to broaden distribution through dealer partners, scale the Roadster and strengthen lifecycle engagement with its existing customer base.
Artificial intelligence is also expected to play a greater role across customer acquisition, fulfilment, service, procurement and cell research and development, with the company looking to improve the speed, consistency and scalability of operations.
With its expansion into energy storage, defence, UAVs and near-space applications, Ola Electric is seeking to evolve its cell business from an internal supply capability for its automotive operations into a broader technology platform serving multiple industries.
The company said these initiatives strengthen its positioning as a vertically integrated technology and energy company, with the focus now shifting towards disciplined execution, stronger operating leverage and greater ownership of the technologies underpinning its products.