Ola Electric Shares Slide 3% Despite Refuting Battery Technology Allegations
Ola Electric is facing a challenging market landscape as its shares experienced a 3.3% decline on the BSE, closing at ₹45.25. This drop occurred even as the company issued a strong rebuttal to allegations from a South Korean media outlet that accused it of improperly acquiring foreign battery technology.
Ola Electric’s Response to Allegations
– Ola Electric categorized the report as misleading and baseless.
– The South Korean media claimed a former LG Energy Solution executive attempted to transfer intellectual property related to pouch cell technology to the Indian EV maker.
– Ola emphasized that it has no research or commercial interest in the outdated technology, implying that the allegations may stem from competition-driven motives.
Innovations in Battery Technology
– Ola Electric introduced its proprietary 4680 Bharat Cell, featuring advanced dry electrode technology in a cylindrical format. This innovation positions Ola ahead of the pouch cell technology mentioned in the controversial report.
– The media report surfaced at a critical moment, as Ola initiated commercial production of its Bharat Cell batteries.
Recent Developments and Future Prospects
– The company has commenced commercial deliveries of its battery cells and is ramping up production capacity to meet growing demand.
– Ola anticipates generating revenue from its homegrown battery technology and its upcoming residential energy storage system, Ola Shakti.
– Notably, Ola has received certification from the Automotive Research Association of India (ARAI) under the latest AIS-156 Amendment 4 standards, validating its 4680 Bharat Cell battery packs in a 5.2 kWh configuration.
Financial Overview
– For the second quarter, Ola Electric reported a narrower net loss of ₹418 crore, down from ₹495 crore the previous year, aided by cost-reduction measures.
– However, the company saw its operating revenue plummet by 43%, reflecting weaker sales of its electric two-wheelers.
– After recent fluctuations, the stock is down approximately 46% in 2025, indicating ongoing challenges in the EV market.
In conclusion, while Ola Electric’s shares have taken a hit following allegations regarding battery technology, the company remains focused on innovation and growth. Its commitment to developing cutting-edge battery solutions positions it well for future success in a rapidly evolving industry.