Mukesh Ambani's Reliance, Bhavish Aggarwal's Ola Electric win incentives in $2.4B battery programme
Ola Electric and Reliance are among four companies that won government tenders to build electric batteries in India and will receive incentives to pursue their manufacturing.
Ola Electric, Reliance Industries, Hyundai, and jewellery maker Rajesh Exports, have won government tenders to boost battery cell production in India, which grants these four entities incentives to pursue the manufacturing of these batteries.
These tenders come under India's $2.4 billion programme the government has built to create self-sufficiency in the global clean energy supply chain. The programme was finalised last year to aid India's attempts to meet its decarbonisation goals.
According to Reuters, Ola Electric and Hyundai have won incentives for 20 GWH capacities, while Reliance and Rajesh Exports have won incentives for 5 GWH capacities. No financial value for these incentives was disclosed.
On Wednesday, Bhavish Agarwal's Ola Electric had announced the appointment of Prabhakar Patil — the former chief of LG Chem Power — onto its board, claiming it plans to set up a total of 50 GWH capacity over the next half-decade.
In total, ten companies had bid for these tenders, including vehicle manufacturer Mahindra & Mahindra, battery makers Amara Raja and Exide, and engineering conglomerate Larsen & Toubro.
Besides investing in Ola Electric, Mukesh Ambani's Reliance Industries also benefits from this news as it justifies its earlier $200 million acquisition of Faradion and Lithium Works. The former is known for its sodium-ion batteries, while the latter manufactures lithium-ion phosphate batteries.
Edited by Suman Singh