Gogoro to go ahead with $2.5 billion battery swapping MoU with Maha govt without Belrise

Taiwan-based global battery systems provider Gogoro has decided to go ahead with the $2.5 billion MoU with the Maharashtra government to build battery-swapping infrastructure in the state, without Pune-based auto component maker Belrise Industries.

The three parties signed the MoU (Memorandum of Understanding) in January 2023, at the World Economic Forum in Davos. However, Gogoro and Belrise have now decided not to go ahead with the plans together, as they could not form a joint venture as planned. 

“After the MoU announcement, Belrise and Gogoro could not reach a JV establishment stage due to lack of completion and fulfillment of several other variables and parameters beyond the control of the two partners,” a Belrise spokesperson said.

“However, both Gogoro and Belrise have good business ties and relationships; and Belrise is a strategic partner and supplier of the Gogoro CrossOver. The promoters of both Gogoro and Belrise will continue to seek/find ways/opportunities to partner together to contribute to India's electrification initiatives,” the spokesperson added.

In June, Gogoro said it received an offer letter from the Maharashtra government to into an ‘Ultra Mega Project’ agreement to make vehicles, smart battery packs and battery swap stations, and battery swapping infrastructure in Maharashtra, starting in late 2023.

The offer letter follows the earlier MoU and the proposed Ultra Mega Project deal would exceed US$1.5 billion, including financial incentives and support from the state.

Autocar Professional also reached out to Gogoro, to which its spokesperson clarified that "The offer letter from Maharashtra has moved forward without the inclusion of Belrise." The Memorandum of Understanding was non-binding, the spokesperson noted.

“Gogoro has had many discussions with the Indian Government on the subject of standardisation in safety. Ongoing conversation and feedback from different government officials is in line with Gogoro's vision and technology," the Gogoro spokesperson said.

The Nasdaq-listed Gogoro’s India unit last week announced its plans to start its swapping service in Delhi and Goa immediately and expand to Mumbai, Pune, and Maharashtra in the first half of 2024. However, the company has not clarified how many stations it plans to install in Maharashtra or pan India.

Gogoro has also unveiled its first Indian-made electric scooter line up under the name CrossOver. Initially, CrossOver will be for Gogoro’s business-to-business customers. The company said it will be available to business-to-consumers in the later part of the next year. 

The company also has partnerships with Zypp Electric, a Delhi-based EV-as-a-Service platform, and FutureEV, a scooter-sharing service company in Goa. Zypp Electric has said it plans to incorporate 500-1,000 Gogoro electric scooters in its fleet.

Meanwhile, the Indian government is yet to launch a policy on battery swapping. The government has said NITI Aayog is in talks with the stakeholders on the draft policy to ensure it is prudent and promotes electric vehicles without adversely impacting technological innovation.