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Ola's Bhavish Aggarwal Reflects on Public Market Experience as Battery Gigafactory Launch Faces China Supply Concerns

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  Published in Automotive and Transportation on Tuesday, August 19th 2025 at 4:31 GMT by Aaron Neefham, moneycontrol.com
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Ola Electric’s journey through the public markets has been a rollercoaster, and founder Bhavish Aggrawal is candidly acknowledging the lessons learned amidst the company’s ongoing expansion. In a recent LinkedIn post, Aggrawal detailed both the challenges and valuable insights gained from the initial public offering (IPO) process, while simultaneously addressing concerns surrounding the supply chain for their ambitious battery gigafactory project in India.

The IPO, which launched in August 2024, was met with significant volatility and scrutiny. While the company initially saw a surge in share prices, it quickly faced headwinds including broader market corrections and investor skepticism regarding Ola’s profitability timeline. Aggrawal's post emphasized that while the experience wasn't without its difficulties, it provided invaluable feedback on how to better communicate the company's vision and progress to investors. He specifically highlighted the importance of managing expectations and being more transparent about the challenges inherent in building a disruptive electric vehicle (EV) business.

"We’ve learned a lot from our public market journey so far," Aggrawal wrote, "and are grateful for all the learnings." This sentiment underscores a shift towards a more measured approach to investor relations, moving away from overly optimistic projections and embracing a more realistic portrayal of the company's trajectory. He acknowledged that building an EV empire is not a sprint but a marathon, requiring patience, resilience, and continuous adaptation.

Beyond reflecting on the IPO experience, Aggrawal’s post also addressed concerns surrounding Ola Electric’s battery gigafactory project. The facility, slated to produce cells for both Ola's electric scooters and cars, represents a significant investment in India’s domestic EV ecosystem and aims to reduce reliance on imported batteries. However, a crucial element of the factory’s operation hinges on sourcing raw materials like lithium, nickel, and cobalt – many of which are currently dominated by China.

The geopolitical landscape adds another layer of complexity. With rising tensions between India and China, concerns have emerged about potential disruptions to the supply chain for these critical battery components. Aggrawal acknowledged this risk, stating that Ola Electric is actively working on diversifying its sourcing channels and building strategic partnerships with suppliers from other countries like Australia, Indonesia, and Brazil.

"We are proactively mitigating risks associated with dependence on any single geography," he explained. This diversification strategy includes exploring direct investments in mining projects overseas to secure a stable supply of raw materials. The company is also investing heavily in research and development to explore alternative battery chemistries that reduce reliance on these specific minerals, potentially moving towards sodium-ion batteries or solid-state technology in the future.

The gigafactory itself is progressing well, with construction underway and expected to begin production by early 2026. The facility aims for an initial capacity of 3.8 GWh, scaling up to 100 GWh over time – enough to power a significant portion of India’s burgeoning EV market. This ambitious plan aligns with the Indian government's push for greater energy independence and localization within the manufacturing sector.

Aggrawal also touched upon Ola Electric’s broader product roadmap, hinting at further expansion into electric cars and potentially even two-wheeled vehicles beyond scooters. The company remains committed to its mission of electrifying India’s mobility landscape and contributing to a cleaner, more sustainable future. He reiterated that despite the challenges faced, Ola Electric is firmly on track to achieve its long-term goals.

In essence, Bhavish Aggrawal's LinkedIn post served as both an apology for any missteps during the IPO process and a reassurance to investors and stakeholders about Ola Electric’s commitment to overcoming obstacles and building a sustainable business. The company is learning from its experiences in the public market, proactively addressing supply chain vulnerabilities, and continuing to push forward with its ambitious plans for the future of electric mobility in India – all while acknowledging that the road ahead will require perseverance and adaptability. The focus now appears to be on demonstrating tangible progress towards profitability and solidifying Ola Electric’s position as a leader in the Indian EV revolution.