Castrol invests $50 million in EV battery-swapping giant Gogoro

Castrol, a leading producer of lubricants, has announced an investment of $50 million in Taiwan-based Gogoro Inc., a top player for swappable batteries for electric two-wheelers. Gogoro has been aggressively expanding globally and recently set up shop in India as well. The announcement marks Castrol’s foray into the new energy business. The diversification is a part of the brand’s ‘Onward, Upward, Forward’ strategy.

Castrol's stake in Gogoro

Castrol will be investing in Gogoro via its affiliate Castrol Holdings. It 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.

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 to create additional value for our shareholders."

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 In India

Gogoro forayed into the Indian market with its battery-swapping network a few years ago. The company is also manufacturing electric two-wheelers in India and introduced the CrossOver ‘Smartscooter’ in December 2023. The new electric scooter comes with battery-swapping technology. The company kicked off its battery-swapping network in Delhi and Goa for B2B customers. The CrossOver has been designed for B2B customers.

The Gogoro battery-swapping network leads the business in Taiwan. It supports over 600,000 vehicles and has more than 1.3 million batteries in circulation through 12,500 battery swapping stations. The Gogoro Network supports 450,000 daily battery swaps with more than 590 million total battery swaps to date. The Gogoro battery-swapping stations are available in 45 cities globally with a customer base of over 2.8 million.

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