Ola Electric, backed by SoftBank, is considering bidding for lithium mining rights in the Indian government’s auction, aligning with plans for domestic lithium-ion battery production. India aims to boost electric vehicle (EV) adoption, targeting 30% of total car sales by 2030. The ongoing auction is expected to generate $5.4 billion from 20 blocks. Other potential bidders include Adani Enterprises, Vedanta Ltd, and Reliance Industries.
Ola Electric, an Indian e-scooter manufacturer backed by SoftBank, is reportedly contemplating bidding for lithium mining rights auctioned by the Indian government. This strategic move aims to enhance its electric vehicle (EV) battery manufacturing initiatives as part of efforts to secure essential minerals like lithium for EV battery production.
The government, led by Prime Minister Narendra Modi, initiated critical minerals auctions last year to ensure a stable supply chain for key raw materials.
India is promoting electric vehicle production to address escalating energy demands, aiming to mitigate greenhouse gas emissions and decrease dependence on fossil fuel imports.
Electric vehicles constituted around 2% of the total car sales in India, which amounted to 3.9 million in the last fiscal year. The government aims to increase this share to 30% by 2030.
Ola Electric has expressed interest and raised inquiries regarding land acquisition and the exploration of minerals beyond lithium in the auctioned blocks, according to one source. Although Ola executives have participated in auction meetings, the company has not made a final decision. Factors such as global lithium prices and the feasibility of mining influence this decision, as per the second source.
Ola’s focus on lithium is crucial, given its plans to domestically manufacture lithium-ion batteries for electric vehicles. This strategic move aims to achieve vertical integration in the supply chain, according to the second source. Both sources, remaining anonymous as they lack authorization to speak to the media, provided this information. Ola Electric opted not to offer a comment.
Established in 2017 in Bengaluru, India’s tech hub, Ola Electric emerged as the market leader with over 30% market share since launching its e-scooters two years ago. In the ongoing auction, the government anticipates generating approximately Rs 45,000 crore ($5.4 billion) by auctioning 20 blocks across eight states.
Adani Enterprises, Vedanta Ltd, Reliance Industries, and Himadri Chemicals are among potential bidders for lithium, as reported by Reuters. Additionally, Dalmia Cement, UltraTech Cement, and NLC India have expressed interest in the lithium blocks, according to one source. Despite email inquiries from Reuters seeking comments, the companies have not responded.
