Stock movements tied to battery and materials strategy
Ola Electric’s shares fell 7.79% to an intraday low of ₹37.71 on the BSE, while rival Ather Energy surged nearly 10% after announcing plans to reduce aluminum usage in its vehicles. The day’s stock moves reflected two technology-linked themes: battery manufacturing choices and materials engineering under volatile supply-chain conditions.
Ola Electric’s battery format transition and capacity expansion
Ola Electric announced that its in-house developed 46100 Lithium Iron Phosphate (LFP) cell is ready, marking a key step in its push toward vertical integration and cost-efficient EV manufacturing. The 46100 format is larger than the current NMC 4680 Bharat Cell, and this change is expected to improve scale and cost efficiency with diverse uses across mobility and energy storage.
The new 46100 LFP cell is expected to be integrated in Ola Electric’s products from the coming quarter (Q2 FY27). This indicates that Ola’s near-term vehicle technology roadmap is being shaped by a battery form-factor transition, moving from the NMC 4680 Bharat Cell approach already in use to a larger LFP format intended for scaling.
Capacity expansion is the other component of the strategy. Ola is ramping up its Gigafactory’s capacity to 6 GWh from 2.5 GWh, while vehicles integrated with the 4680 Bharat Cells are already on the road. These details indicate that Ola’s battery strategy encompasses both chemistry selection (LFP versus NMC) and manufacturing throughput and cell format readiness.
Ola’s stock performance has been tied to operational indicators. Registrations improved in March, with registrations jumping over 150% month-on-month to 10,117 units from 3,973 units in February. Daily registrations crossed 1,000 units in the last week of March, and cumulative registrations surpassed the 1 million mark. The company had faced declining sales and share price over the past year.
Market context: Broader decline amid geopolitical tensions
Ola’s intraday decline occurred amid broader market weakness. The Nifty 50 fell over 2% to an intraday low of 23,555.6, and the BSE Sensex fell 2.16% to a low of 75,868.32. At 13:45 IST, Ola Electric was trading 6.97% lower at ₹38.05 on the BSE, with market capitalisation at 16,783 Cr (approximately $1.8 billion).
The broader market downtrend followed stalled negotiations between the US and Iran. Supply-chain disruptions linked to geopolitical tensions can affect commodity and materials costs relevant to EV manufacturing.
Ather Energy’s aluminum reduction strategy
While Ola’s stock pulled back, Ather Energy continued to rise. The company surged 9.84% to touch an all-time high at ₹948.45 intraday, and at 13:45 it was trading over 8% higher at ₹932.90 versus the previous close of ₹863.45.
The rally was attributed to improvements in the EV market outlook and a specific manufacturing materials strategy. Ather Energy announced plans to reduce its use of aluminum, which has become more expensive in recent weeks due to supply chain disruptions.
Ather Energy aims to increase the intake of recycled aluminum while reducing overall aluminum usage. The company also plans to increase focus on family-oriented vehicles that are not necessarily performance-oriented. This shift in design priorities could alter how lightweighting and material selection are handled across vehicle segments.
Ather expects a 15% reduction in engineering costs for each vehicle for its upcoming EL platform through these materials engineering decisions. This figure ties aluminum usage and recycled aluminum sourcing to downstream development and manufacturing cost structure.
Implications for EV hardware planning
Together, these developments indicate how EV hardware roadmaps are being shaped by both technical readiness and input-cost volatility. For Ola Electric, the readiness of the 46100 LFP cell format and its near-term integration target of Q2 FY27 are supported by a planned capacity ramp to 6 GWh. For Ather Energy, the technology lever is materials selection and reuse: increasing recycled aluminum intake and reducing total aluminum usage to address volatile commodity pricing.
Material substitution strategies may become more common across EV platforms as companies respond to supply-chain volatility. Similarly, battery form-factor transitions like Ola’s move toward 46100 LFP could translate into measurable manufacturing efficiency gains once integration begins.
Both companies’ reported updates connect technology decisions to business metrics. Ola’s March registration improvements and Ather’s market performance appear alongside hardware steps—battery cell readiness for Ola and an aluminum-cost engineering plan for Ather. This suggests that investor attention is increasingly focused on how engineering choices map to cost, manufacturing scale, and platform execution.
Source: Inc42 Media