
Castrol, the leading lubricant business of energy firm BP, has said that it will invest in a technological leader in supporting urban smart mobility by deploying battery-swapping ecosystems for two-wheeled vehicles.
While conventional electric vehicle (EV) charging takes time and is not always convenient, battery swapping is a much faster way to refuel an EV. Gogoro plans to support the highly populated cities of the world in their transition towards two-wheeled vehicles that are fuelled sustainably.
Gogoro says its network has already supported over 4 billion miles of journeys through 370 million battery swaps. Through affiliate firm Castrol Holdings, Castrol will invest up to US $50 million through two tranches. In the first tranche, Castrol will purchase ordinary shares worth US$25 million. This will be likely followed by a convertible note worth the same amount.
Michelle Jou, the CEO of Castrol, said that the company had a significant role to play in the shift towards electric-powered two-wheeled vehicles and the ecosystem to support them, adding:
“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.”
Castrol will own 5.72% of the outstanding ordinary shares in Gogoro following the first tranche. This will fit with the company’s new “Onward, Upward, Forward” strategy, where it seeks to diverse into new areas outside of its established coolant and lubricant business.