South Korea’s LG Energy Solution has flagged a possible leak of its battery technology to Ola Electric. In response, Korean authorities and LGES have initiated a formal investigation into the matter.
Specifically, the probe centres on claims that a former LG researcher transferred proprietary “pouch-type ternary lithium‐ion battery” manufacturing know-how to Ola Electric, in breach of industrial security laws in South Korea.
Background: who & what
- The researcher in question allegedly departed from LGES in late 2023 and is now under investigation.
- LGES reports that the leaked know-how includes manufacturing steps, material ratios and process parameters for a pouch-type battery cell. NDTV Profit
- Ola Electric, meanwhile, has been developing its own “4680 Bharat Cell” (cylindrical format) and a battery innovation centre in India.
- There is a technological mismatch: the investigation concerns pouch-type cells, while Ola’s public roadmap emphasises cylindrical cells. Analysts say this raises further questions.
Why this matters
- If proven, the leak would implicate major issues of intellectual property (IP) protection, industrial espionage and cross-border technological transfer.
- For Ola Electric: reputational risk, potential regulatory scrutiny (in India and abroad), and possible disruption of its battery cell programme.
- For LGES and South Korea: safeguarding “national core technology” is a matter of policy and security. The leak is being treated as such.
- For the EV/battery supply-chain globally: It underscores how strategic battery technology is, and how talent mobility, IP enforcement and international regulatory frameworks are becoming focal.
Key Questions & Risks
- What specifically was transferred? Details are still emerging on which steps/materials were shared and whether they are truly unique to LG’s proprietary process.
- What legal/regulatory implications? In South Korea, this falls under industrial security laws; for India, implications could involve regulatory authorities, IP claims or trade control measures.
- How will Ola respond? At this stage, Ola has not publicly addressed all specifics of the allegation. Their public narrative emphasises “built in India” tech for the 4680 cell.
- What happens next? Possible outcomes include criminal or administrative proceedings in South Korea, civil suits or arbitration claims, and a broader supply-chain investigation.
- Impact on Ola’s battery rollout: If technology concerns lead to delays or re-engineering, Ola’s timeline for its cell factory and “Bharat Cell” rollout could be affected.
What to watch going forward
- Updates from South Korean police or prosecutorial agencies on the formal investigation: indictments, charges, or similar.
- Statements from Ola Electric or LG Energy Solution clarifying the nature of the technology transfer, scope and timelines.
- Impacts on Ola’s investors, financiers or regulatory approvals: any changes in funding, valuations or risk assessments.
- Supply chain audits: Whether Ola will need to reassess its engineering or sourcing of its cell manufacturing process.
- Wider industry implications: This incident may spur more rigorous IP and talent movement rules in battery/E V sectors globally.
Conclusion
The headline that “LG Korea to launch investigation against Ola Electric” signals a serious turn in the EV battery technology arena. While details are still emerging, the core allegation—that Ola may have benefited from leaked LG battery tech—poses material risks for both companies and the industry. Stakeholders will want to monitor how the investigation unfolds, the responses from Ola and LGES, and whether broader regulatory or market consequences arise.
