In a strategic move to diversify its portfolio, Castrol, a subsidiary of BP, is investing USD 50 million in Gogoro, a Taiwan-based leader in electric scooter battery-swapping technology. This significant investment marks Castrol’s first foray into the micro-mobility sector, aligning with its new ‘Onward, Upward, Forward’ strategy aimed at exploring new opportunities beyond its core lubricants and fluids business.
Gogoro operates an extensive network that supports over 600,000 vehicles with more than 1.3 million smart batteries in circulation through its 12,500 battery-swapping stations. The company’s open and interoperable battery-swapping platform caters to lightweight two-wheeler and three-wheeler urban vehicles. Gogoro’s system facilitates 450,000 daily battery swaps and has achieved over 590 million swaps to date. Their network spans 45 cities, primarily in Asia, serving 2.8 million subscribers.
The first tranche of Castrol’s investment, amounting to USD 25 million, will secure 5.72% of Gogoro’s outstanding ordinary shares. The remaining USD 25 million will be invested through a convertible note, further solidifying Castrol’s stake in the company. “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 ecosystem,” said Michelle Jou, CEO of Castrol.
Gogoro, known for its high-tech electric scooters, is primarily an energy company with nearly two million electric vehicle batteries produced and hundreds of millions of battery swaps executed. The company has targeted global expansion in regions with high rates of scooter and motorcycle ownership, often where two-wheeled vehicles outnumber cars. “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,” said Horace Luke, Founder and CEO of Gogoro. “This investment by Castrol is a testament to our success and enables us to expand even faster.”
The partnership between Castrol and Gogoro is expected to accelerate Gogoro’s service expansion to new cities and countries, enhancing the green credentials of both companies. This investment underscores the growing trend of major oil companies investing in the electric vehicle infrastructure to remain pivotal players in the evolving energy economy. With this collaboration, Castrol aims to support the global transition to electric vehicles and contribute to reducing urban emissions, reinforcing its commitment to sustainable transportation solutions.