Shares of Ola Electric Mobility Ltd. rose as much as 6.5% to Rs 32.25, extending gains for a second consecutive trading session after the company announced progress on its battery technology.
The stock movement follows the company's April 7 announcement that its in-house Lithium Iron Phosphate (LFP) cell is ready, marking a milestone in its efforts to build an electric mobility and energy ecosystem. The new 46100 format LFP cell is larger than the current NMC 4680 Bharat Cell and will begin entering Ola's products from the next quarter.
Battery Update
The development comes as Ola Electric continues to scale its Gigafactory and expand its battery manufacturing capabilities. The company said thousands of vehicles powered by its 4680 Bharat Cells are already on Indian roads, clocking millions of kilometres in real-world conditions. The Gigafactory currently has a capacity of 2.5 GWh and is being scaled up to 6 GWh.
An Ola Electric spokesperson said, "The readiness of our LFP 46100 cell is a pivotal moment in our journey to build India's most advanced EV and energy ecosystem. Along with the strong progress at our Gigafactory and proven performance of our 4680 cells on the road, this milestone reflects our deep commitment to innovation, scale, and self-reliance. LFP technology will play a critical role in driving affordability, enabling energy storage solutions, and accelerating the transition to electric mobility as we move closer to realising the vision of End ICE Age."
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Cost, Adoption Focus
The company said the introduction of LFP chemistry is expected to reduce vehicle costs and support wider EV adoption. It added that the new cell format will also support battery storage solutions and mark the next phase of scale-up at its Gigafactory.
In an exchange filing on April 7, the company said its promoter and CMD had shared an update stating, "Our LFP cell is now ready! Gigafactory ramp is going really well. 1000s of vehicles powered by our 4680 cells are already on roads, clocking many millions kms in real-world conditions. Proud of the team."
The statement added, "Excited to announce: Our LFP cell is ready for prime time! This is our 46100 format cell - bigger than our current NMC cell. It will start entering our products from next quarter."
Market View
The company said LFP technology would support lower vehicle costs, faster EV adoption, battery storage products, and the next phase of Gigafactory scale-up. It also said its efforts to remove barriers to EV adoption include affordability programmes, service guarantees, buyback assurances, and passing on government incentives such as PLI benefits to customers.
On Thursday, trading volume was more than double its 20-day average, according to Bloomberg data. On Wednesday, the stock rallied, hitting 10% upper circuit. Among the eight analysts tracked by Bloomberg, six have a 'Sell' rating and two have a 'hold' rating on the stock. The analyst consensus price target tracked by Bloomberg was Rs 27.57, implying a potential decline of 12% from the last regular trading price. The stock declined 38% in the past 12 months.
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