At the very least, India and South Korea have cemented strong trading relations despite occasional conflicts between these two countries. However, a ridesharing platform based in India, Ola, is currently facing international scrutiny that is hugely affecting the relations between the South Asian nation and the East Asian country.
Financial experts are accusing the company of “stealing” their signature Bharat Cell from South Korea’s LG Energy Solution. Oh no!
The scoop
LG Energy Solution, you are right in thinking, is one of the divisions of the popular South Korean tech company, LG. LG Energy Solution designs and manufactures lithium-ion batteries that power automotive technology and other energy storage systems.
Previously, Ridesharing Forum reported that Ola’s electric car division, Ola Electric, had officially started delivering its S1 Pro+ scooter, featuring the indigenously developed 4680 Bharat Cell.
The S1 Pro+ scooter running with 5.2kWh is historic as it is the first product to get powered by the specified Bharat Cell battery pack, which delivers more range, better performance, upbeat safety, and more.
It is promising, yes. The Bharat Cell is promising, but what is this accusation?
The accusation
Media have reported, saying that financial experts are suggesting that the core data and know-how for the next-generation and high-density pouch-type battery cells of LG were transferred to Ola by a former LG Energy Solution researcher hired last November 2023. That makes the issue even more controversial.
The South Korean company detected the breach in early 2025, prompting the country’s National Intelligence Service to conduct an investigation. To ensure that it is not guilty, the research was fired by Ola Elecric in October 2025.
However, the accusation remains. Industry specialists warn that this has put Ola in a position challenging its claims of domestic innovation, raising doubts over the credibility of their electric car manufacturing initiatives.
Impacting India-South Korea relations
Other parties are looking at this more profoundly. Some observers are saying this incident have wider diplomatic and industrial applications, straining the good relations between South Korea and affecting the trust of consumers in the electric vehicle sector and production of India. The plot thickens.
Lower Moody’s ratings
That incident could be among the reasons why Moody’s Ratings has recently downgraded Ola, coming from its parent company, from a B3 rating to Caa1, thereby changing the investors’ outlook for the brand to negative.
Moody’s ratings are opinions on the creditworthiness of a company or government, indicating its ability to meet its financial obligations.
However, insights that are official are that this downgrade is attributed to weakening financial performance, reduced liquidity, and increased risk of violating loan covenants, not really because Ola is being accused of stealing assets of other companies.
Official release indicates that Moody’s has downgraded Ola’s corporate family rating and the rating on the guaranteed senior secured term loan borrowed by its division in the Netherlands to B3, while the loan is being guaranteed by Ola.
Ola Consumer is headquartered in India, providing ride-hailing services and operates other business verticals, such as financial services and cloud kitchens.