Castrol, the United Kingdom’s largest lubricant maker, snagged a stake in Taiwanese electric two-wheeler battery swap company Gogoro. Gogoro wants to accelerate the transition to electric two-wheelers in the world’s most densely populated cities.
There are about 250 million motorized two-wheelers in the Association of Southeast Asian Nations region, making them by far the most popular modes of personal transport. Like their four-wheeler cousins, the electrification of bikes and trikes is growing too. Annual sales of electric two-wheelers in the region is at about 11 million.
Gogoro’s technology is a battery swapping platform for lightweight two-wheelers and three-wheelers. Castrol thinks this is an opportunity not to be missed and allocated U.S. $50 million to get in on the action. A first tranche of $25 million will buy a 5.72% stake in Gogoro through outstanding ordinary shares. The second tranche will pay for a convertible note, a loan that BP can convert into equity later at a set price.
In June 2018, BP bought Chargemaster for £130 million. Chargemaster was the UK’s largest EV charging company and was later rebranded as BP Pulse.
“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 Castrol. “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.”