In an effort to localize the supply chain for cleaner transportation, the Indian company Ola Electric Mobility Pvt. has plans to invest 76.1 billion rupees ($920 million) in the construction of what it claims will be the world’s largest electric vehicle hub.

According to a statement released by Ola on Friday, the hub will be located in the state of Tamil Nadu in southern India and will cover a total area of 2,000 acres (809 hectares). It will be used for the production of electric two-wheelers, cars, and battery cells in addition to housing vendor and supplier parks. According to the information provided, the Indian start-up would initiate large – scale production of cells from the hub later on in the year.

Although the domestic production of essential components of the electric vehicle supply chain, such as batteries, will make electric vehicles more affordable, India possesses only a small portion of the raw materials required to meet the domestic demand for lithium-ion batteries, which Crisil predicts will increase one hundred times by the year 2030. In addition to Ola, billionaire Mukesh Ambani’s Reliance Industries Ltd. and bullion refiner Rajesh Exports Ltd. will receive financial incentives as part of a government programme to assist the development of improved battery cells. The programme has a budget of $2.3 billion.

The establishment of a trustworthy supply chain may be of assistance to Ola in the process of creating electric vehicles. Following a fire that broke out in one of the electric scooters created in a batch, the firm with headquarters in Bengaluru issued a recall for 1,441 of the vehicles. At first, delivery of Ola scooters was slow because India relied heavily on imported parts, which were hard to get because of a global chip shortage.

According to the statement released by the startup, Ola presented its first lithium-ion cell in the previous year. The cell was produced in Ola’s battery innovation facility in Bengaluru, which witnessed an investment of $500 million. According to the statement, Ola plans to use its resources over the next ten years to set up a regional supply chain for making motors, rare-earth magnets, semiconductors, lithium processing, and electrodes from minerals like graphite and nickel.