Gogoro, Belrise to Build $2.5 Billion Battery-Swapping Network in India
The plan is to construct between 10,000 and 15,000 stations over the course of the agreement, starting with the 10 largest cities including Mumbai, Nagpur and Pune.
(Bloomberg) -- Gogoro Inc. signed a deal with Belrise Industries Ltd. to build battery-swapping stations for two-wheelers across western India’s Maharashtra state, where the Taiwanese firm and its local partner will invest $2.5 billion over the next eight years to spur adoption of electric vehicles.
The two companies have a non-binding memorandum of understanding for a 50:50 partnership to boost energy infrastructure across the Indian state, according to a statement Tuesday from Nasdaq-listed Gogoro, which is based in Taipei City.
The plan is to construct between 10,000 and 15,000 stations over the course of the agreement, starting with the 10 largest cities including Mumbai, Nagpur and Pune, Gogoro Chief Executive Officer Horace Luke said in an online interview Monday.
“In the beginning, the deployment will be gentle,” Luke said. “Once the model is proved, once the stations are deployed, then the ramp up is going to happen and the goal is to saturate the state. Our goal is millions of vehicles on the road to be able to swap batteries.”
Of the total 1.33 million electric vehicles in India, Maharashtra had the fourth-highest fleet at 116,646 units as of July.
Quick, Easy
Battery swapping — a technology pioneered in China that allows drivers to exchange their batteries for fresh, charged ones — is not just quick and easy. It will also help India electrify what is the world’s largest fleet of two- and three-wheelers, a crucial step if the country wants to reduce emissions in some of the planet’s dirtiest cities and meet its goal of becoming net carbon zero by 2070.
Backed by Singapore’s state-owned investment firm Temasek Holdings Pte and former US Vice President Al Gore’s Generation Investment Management, Gogoro is now pushing beyond its home market of Taiwan, which provides almost all of its revenue.
The maker of electric scooters signed deals with automakers in India, China and Indonesia over the past two years to build vehicles using its battery-swapping technology. Gogoro, Hon Hai Precision Industry Co. and two Indonesian companies announced an $8 billion investment to jointly develop EV infrastructure in Indonesia.
The battery stations Gogoro currently operates in Taiwan are up to six feet tall and can charge as many as 30 batteries at a time. They are typically installed in high-traffic, easily accessible locations such as gas stations and metro stations.
The Maharashtra investment will initially focus on providing battery-swapping infrastructure to delivery drivers on two- and three-wheelers in the Indian state before expanding to meet the needs of other road users, according to Gogoro’s Luke.
Maharashtra-based Belrise is a closely-held maker that specializes in component manufacturing for automobile and electronic goods industries, according to its website.
Beyond battery-swapping for delivery vehicles, Gogoro and Belrise are exploring additional applications, such as powering parking meters and helping Maharshtra’s 6 million farmers run water pumps 24 hours a day, Luke said, adding that there could be some subsidies from the state to help launch the program.
--With assistance from .
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