Castrol Invests $50 Million In Gogoro For Its Battery Swapping Tech

One of the most prominent makers of lubricants, Castrol, has announced an investment in Taiwan’s Gogoro Inc. of up to $50 million. Gogoro is the market leader in Taiwan when it comes to swappable batteries for electric two-wheelers and has been aggressively expanding to global markets, including India. Castrol Holdings, an affiliate of Castrol, will invest $25 million in the first tranche in ordinary shares of Gogoro. This will be followed up with a second $25 million investment in the form of a convertible note, subject to the consummation of certain transactions, the company said in a statement. 

The first tranche of the investment will see Castrol acquire a 5.72 per cent stake in Gogoro. It will also mark the lubricant maker's diversification into the new energy business under its ‘Onward, Upward, Forward’ strategy.

Speaking about the investment, Michelle Jou, CEO - Castrol, said, “Two-wheelers are a critical part of our global product portfolio and as our customers transition to electric two-wheelers the Castrol brand has an important role to play in the eco-system. Gogoro is a global leader in two-wheeler battery swapping and our investment in Gogoro is a strategic step towards diversifying our portfolio, remaining relevant in our customers’ lives, embracing new opportunities to future-proof our iconic 125-year-old brand and creating additional value for our shareholders.”

Also Read: Taiwanese EV Giant Gogoro Forays Into South America, Begins Operations In Chile And Colombia

Speaking about the investment, Horace Luke, Founder and CEO - Gogoro, said, “Gogoro’s proven battery swapping platform and smart electric two-wheeler vehicles have demonstrated how cities can be transformed when given access to smart, sustainable, and convenient portable power. This investment by Castrol is a testament to this success and enables us to expand even faster.”

Gogoro has been expanding its ecosystem of interoperable battery swapping across major metropolises. The swappable batteries have been designed to power electric two-wheelers and three-wheelers in urban areas. The company supports more than 6,00,000 electric vehicles and has more than 1.3 million batteries in circulation through its network of 12,500 battery swapping stations in Taiwan. It has a presence in India in partnership with a two-wheeler giant. 

Also Read: Gogoro Crossover Launched In India; Firm To Set Up Battery-Swapping Network Soon

Hero MotoCorp has also been proactive in setting up battery swapping stations in key markets. It is also producing electric two-wheelers in India at its new facility in Maharashtra. 

With Castrol coming on board, Gogoro should be able to expand its presence further and faster in newer markets globally. The Gogoro network supports 4,50,000 daily battery swaps, with over 590 million battery swaps to date.