Castrol to invest $50 million in Gogoro for advancing E2W transition in cities

Lubricants major Castrol has announced an investment of up to $50 million in Taiwanese EV firm Gogoro Inc. that is successfully pioneering battery-swapping ecosystems for urban electric mobility in global markets. 

In the first tranche of the investment, Castrol Holdings will invest $25 million in ordinary shares of Gogoro. This investment is expected to be followed by a second batch of $25 million investment in the form of a convertible note, subject to conditions and transactions between the parties. 

The first tranche investment will result in Castrol acquiring approximately 5.72 percent of Gogoro's outstanding ordinary shares. This will be Castrol's first step to unlock diversification opportunities beyond its core lubricants and fluids business under its new 'Onward, Upward, Forward' strategy, according to 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 eco-system," said Michelle Jou, CEO of Castrol, part of bp group. 

She further added, "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."

Commenting on the development, Horace Luke, Founder and CEO of 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 is working on to develop a holistic ecosystem for urban shift to sustainable two-wheeler transportation in the global cities. At the heart of the company's ecosystem is an open and interoperable battery swapping platform for lightweight two-wheeler and three-wheeler urban vehicles.

Castrol's investment decision affirms its belief in battery swapping technology for accelerating the urban mobility shift.