Castrol invests USD50 million in Gogoro to advance smart mobility

Castrol, a global leader in lubricants and part of the bp group based in the United Kingdom, has announced a significant investment of up to USD50 million in Gogoro Inc. (Nasdaq: GGR), a leading technology firm specialising in battery-swapping ecosystems for two-wheelers. This strategic partnership aims to support smart mobility solutions in densely populated urban areas.

In the first tranche, Castrol Holdings, an affiliate of Castrol, will invest USD25 million in Gogoro’s ordinary shares, acquiring approximately 5.72% of the company’s outstanding shares. A second tranche, consisting of a USD25 million convertible note, is expected to follow, contingent on the completion of certain business transactions between the two companies.

“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 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.”

Advancing urban mobility

Taiwan’s electric two-wheeler market has seen significant growth, with electric two-wheelers constituting approximately 14% of the total two-wheeler sales. This increase is attributed to governmental incentives and a growing shift towards sustainable transportation solutions. In Taiwan, the leading company in this market is Gogoro, which dominates the electric two-wheeler sector, providing innovative battery-swapping solutions and catering to both B2B and B2C markets​​​.

Gogoro is renowned for its innovative battery-swapping platform, which supports more than 600,000 vehicles in Taiwan through a network of 12,500 battery-swapping stations. The Gogoro Network facilitates more than 450,000 daily battery swaps and has conducted more than 590 million total swaps to date. The company’s vision is to accelerate the shift to sustainable urban transportation by providing smart, convenient, and portable power solutions for two- and three-wheeler vehicles.

Horace Luke, founder and CEO of Gogoro, highlighted the impact of this 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. This investment by Castrol is a testament to this success and enables us to expand even faster,” said Luke.

This investment is part of Castrol’s broader strategy to explore new opportunities beyond its traditional lubricants business, positioning itself at the forefront of sustainable transportation technologies. The collaboration with Gogoro is expected to enhance urban mobility, reduce carbon emissions, and support the transition to renewable energy sources.