The cost of Ola Electric's electric scooters will drop by a staggering 25% as a result of the company's plans to make lithium-ion cells locally. The Ola S1 Pro, the only electric scooter currently offered by the firm, costs Rs. 1.53 lakh in on-road Bangalore. Local lithium-ion cell production is anticipated to lower battery costs by roughly 40%, which when compared to the total cost of the electric scooter will result in a 25% price reduction.

The Ola S1 Pro's starting price will drop by 25% thanks to locally built lithium-ion cells, making it very appealing to customers and roughly Rs. 1.2 lakh. The prices of Ola's electric scooters won't decrease for another year. At its GigaFactory, Ola Electric intends to start manufacturing lithium-ion cells. This production will start around 2023.

Lithium ion batteries are not made in India; instead, they are imported from nations like China, South Korea, Taiwan, and Japan. The cost of importing these cells significantly raises the final cost of electric vehicles, making them very expensive for the majority of purchasers. If Ola Electric sells the locally made lithium-ion cells to other electric vehicle manufacturers, local production will not only lower the cost of Ola electric scooters but might also lower the cost of other electric vehicles.

Safety is a significant benefit of locally produced Lithium Ion batteries. These cells are probably less likely to catch fire if they are constructed with the harsh Indian weather conditions in mind, especially the summer heat. Since the majority of electric two-wheeler manufacturers, including Ola Electric, have experienced electric two-wheelers catching fire in the Indian summer, this should significantly increase safety.

An important Ola Electric representative stated the following regarding the company's plans to manufacture Lithium Ion cells: These packets would be the first to go into our two-wheelers. Additionally, there are intentions to export them from the nation, but only when the needs of the home market have been addressed. One of the primary goals in the company right now, along with the creation of new products, is the development of batteries, which is essential to making EVs more accessible and safe. Another anonymous Ola Electric representative stated that as EVs are being designed with the country of India's local requirements in mind, local cell production will also make them safer. Even the best battery manufacturer in the world, despite their best efforts, will not be able to create a battery that is suitable for this tough environment because India is only one of many possible markets for their products. We will have a significant competitive advantage over others thanks to these localised cells in terms of price, quality, and safety.