Lubricants company Castrol will make an investment of up to $50m in Gogoro, which is engaged in battery-swapping ecosystems that enable smart mobility solutions for cities.

Castrol Holdings, an affiliate of Castrol, will invest $25m in ordinary shares of the Nasdaq-listed Gogoro in the first tranche of the investment.

It will be followed by a second $25m investment in the form of a convertible note, subject to the completion of certain transactions by the parties in connection with their business collaboration.

The first tranche of commitment will enable Castrol to acquire around 5.72% of the two-wheeler battery swapping firm’s outstanding ordinary shares.

The investment will be the lubricants company’s first step to explore diversification opportunities beyond the core lubricants and fluids business under its new ‘Onward, Upward, Forward’ strategy. Castrol is part of the bp group.

Castrol CEO Michelle Jou said: “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.

“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.”

Established in 2011, Gogoro is engaged in vehicle design and electric propulsion, smart battery design, battery swapping, and advanced cloud services that leverage artificial intelligence (AI) to manage battery charging and availability.

The Gogoro Network is said to support over 600,000 vehicles and has more than 1.3 million smart batteries in circulation across its network of 12,500 battery swapping stations in Taiwan.

Gogoro CEO and founder Horace Luke said: “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.”

Last month, Gogoro and Colombian fuel and lubes company Terpel launched the former’s battery swapping in Bogota Colombia through the Terpel Voltex brand. The companies also introduced the Gogoro 2 Plus and Gogoro VIVA MIX Smartscooters in Colombia.