Castrol steps into electric mobility with strategic investment in Gogoro
Castrol, a prominent global lubricants company and part of the bp group, has announced a significant investment of up to US$50 million in Gogoro Inc. (Nasdaq: GGR), a pioneering technology leader renowned for its innovative battery-swapping ecosystems that facilitate smart mobility solutions for urban environments. This strategic move aligns with Castrol’s vision to diversify and adapt to evolving market demands.
The investment will be carried out in two phases. Initially, Castrol Holdings, an affiliate of Castrol, will inject US$25 million into ordinary shares of Gogoro. This will be followed by a potential second investment of another US$25 million through a convertible note, contingent upon the completion of specific collaborative transactions between the companies.
This initial transaction will result in Castrol acquiring approximately 5.72% of Gogoro’s outstanding ordinary shares. It marks Castrol’s inaugural venture into diversifying its portfolio beyond its core business of lubricants and fluids, under its new strategy labeled ‘Onward, Upward, Forward’. Michelle Jou, CEO of Castrol, emphasized the importance of this investment: “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,” she stated.
Castrol invests $50m in Gogoro to boost electric mobility solutions
Gogoro’s mission is centered around catalyzing the urban transition to sustainable two-wheeler transportation in densely populated cities worldwide. Its innovative, open, and interoperable battery-swapping platform serves as the backbone for lightweight urban vehicles, including two-wheelers and three-wheelers.
Horace Luke, Founder and CEO of Gogoro, highlighted the transformative potential of the partnership: “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.” He added, “This investment by Castrol is a testament to this success and enables us to expand even faster.” In Taiwan alone, the Gogoro Network supports over 600,000 vehicles with more than 1.3 million smart batteries in circulation, featuring a vast network of 12,500 battery swapping stations.
The collaboration between Castrol and Gogoro is a forward-thinking initiative that not only enhances Castrol’s product diversity but also strengthens its position in the burgeoning market of electric mobility. This partnership is poised to set a benchmark in the integration of traditional energy companies with innovative technology solutions, paving the way for a more sustainable future in urban transportation.