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According to sources, e-scooter maker Ola Electric is considering participating in the bidding for lithium mining rights that the government is auctioning, Reuters reports. This possible move could boost Ola Electric’s plans to manufacture electric vehicle (EV) batteries.
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To ensure continuous supply of critical minerals like lithium for EV batteries, the Center launched the first phase of critical minerals auction late last year.
The share of electric vehicles in total car sales in India was about 2 percent, which stood at 39 lakh vehicles in the last financial year. However, the government has set an ambitious target of increasing this share to 30 percent by 2030. To achieve this goal, the government is actively promoting the production of electric vehicles within the country. With this, the government also aims to reduce greenhouse gas emissions and reduce the country’s dependence on fossil fuel imports.
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Ola is yet to take a final decision
According to a source, “Ola has expressed interest and has received several inquiries regarding land acquisition and exploration of minerals beyond lithium in the blocks.”
According to a second source, Ola officials have actively participated in the auction meetings. However, the final decision is pending and depends on factors such as global lithium prices and feasibility of mining, the source said.
Lithium holds critical importance for Ola, given its strategy to manufacture lithium-ion batteries for electric vehicles locally. The second source said the move is aimed at achieving vertical integration within the supply chain.
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The government is planning to increase Rs 45,000 crore from auction
In the current auction, the government expects to raise approximately Rs 45,000 crore raised by auctioning 20 blocks in eight different states.
Other companies bidding for lithium include Adani Enterprises, Vedanta Ltd, Reliance Industries and Himadri Chemicals.
Additionally, sources reveal that Dalmia Cement, UltraTech Cement and NLC India have also expressed interest in acquiring the lithium block.
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