Castrol invests $50 million in Gogoro
Castrol’s $50 million investment in Gogoro marks the legacy fossil fuel company’s first significant step into the electric vehicle sector. Taiwanese battery-swapping giant Gogoro with its Gogoro Network supports nearly 600,000 riders and has more than 1.3 million batteries in circulation at 12,000 battery-swapping stations at over 2,500 locations. This includes markets representing the bulk of the global population with forays into both India and China as well as its home base of Taiwan, as well as Korea, Latin America, and the Philipines.
The investment is part of Castrol’s stated “onward, upward, forward” strategy announced in January this year that outlines “advancing mobility solutions that help people and goods move with greater efficiency through innovative technologies and a commitment to the principles of circularity.” The strategy includes initiatives focussed on “end-to-end digital and service solutions, data centre immersion cooling, and battery thermal management.”
In the first tranche of the investment, Castrol will invest $25 million in ordinary shares of Gogoro, resulting in Castrol acquiring approximately 5.72% of Gogoro’s outstanding ordinary shares.
This second investment tranche is expected to follow with a $25 million investment in the form of a convertible note, which is “subject to the consummation of certain transactions by the parties in connection with their business collaboration,”
Horace Luke, Founder and CEO of Gogoro noted “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’s expansion has achieved considerable attention since the Taiwanese electric two-wheeler and battery swapping hit markets in 2011. In June just passed, the company’s largest shareholder, Gold Sino Assets Limited, announced it would purchase over 32 million ordinary shares, further solidifying their partnership. This $50 million investment investment is intended to bolster Gogoro’s urban battery-swapping ecosystems and support its expansion into international markets.
Already this year, Gogoro has established a new partnership with Sumitomo Corporation and Sumitomo Mitsui Finance and Leasing in Japan and expanded its battery swapping business into Latin America.
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