Gogoro Expands to China: Battery Swapping Network Deal with Yadea & DCJ

Gogoro Expands Global Reach with New Partnerships in China

Barely a month following the announcement of a collaboration with India’s foremost two-wheeled vehicle manufacturer, Gogoro is enacting another significant advancement in its international expansion strategy. This latest venture focuses on the Chinese market, where Gogoro’s innovative technology – notably its swappable smart batteries – will be integrated into scooters produced by Dachangjiang Group (DCJ) and Yadea, both leading companies in China’s motorcycle and electric two-wheel sectors.

Joint Investment and Network Development

DCJ and Yadea are jointly investing $50 million into a newly formed operating company. This entity will be dedicated to the development of novel two-wheel vehicles, branded independently, that will leverage the Gogoro Network. This includes access to Gogoro’s batteries, drivetrains, controllers, and other essential components.

A Technological Ecosystem

“Consider DCJ and Yadea as uniting to establish a network akin to AT&T,” explained Gogoro co-founder and CEO Horace Luke to TechCrunch. “Gogoro will serve as the underlying technology powering their operations, much like Ericsson would in a similar scenario.”

Strategic Partnerships in Asia

Last month saw Gogoro and Hero MotoCorp announce a strategic alliance aimed at constructing a battery-swapping infrastructure and producing electric two-wheeled vehicles within India. These recent agreements in both India and China represent the most substantial steps Gogoro has taken to realize its global ambitions since the initial launch of the Gogoro Smartscooter in 2015.

The Advantage of Swappable Batteries

Gogoro’s signature technology, the swappable battery system, allows riders to quickly exchange depleted batteries for fully charged ones at conveniently located charging stations. These stations are compact enough to be installed on sidewalks.

In Taipei City, where Gogoro is headquartered, these swapping stations are a prevalent feature, often found adjacent to storefronts or near gas stations and parking areas. Because batteries are swappable, electric vehicles utilizing the system do not require stationary charging, effectively mitigating “range anxiety” – a common concern regarding the distance an electric vehicle can travel before needing a recharge.

The primary challenge lies in ensuring a sufficient density of swapping stations to provide convenient access for riders utilizing the Gogoro Network.

Rollout Plan in China

The joint venture between DCJ and Yadea will initially launch in Hangzhou as a pilot city, with plans for expansion to other cities throughout 2022. Specific details regarding vehicle availability and pricing will be disclosed at a later date.

Government Regulations and Market Reach

New regulations introduced by the Chinese government last year mandate that all new vehicles sold by 2035 must operate on “new energy” sources, phasing out fossil fuels. DCJ and Yadea collectively maintain a network of 47,000 retailers, covering 358 cities – representing over half of all cities in China.

Luke emphasized that this extensive retail presence will facilitate rapid expansion beyond the initial Hangzhou launch.

Gogoro’s Turnkey Solution

Gogoro positions itself as a comprehensive solution provider for other electric mobility companies. The company’s own brand initially served to refine its charging infrastructure and establish a strong reputation. In Taiwan, Gogoro-powered two-wheeled vehicles currently account for nearly a quarter of monthly sales.

The swappable batteries were first deployed in Gogoro Smartscooters before being licensed to other manufacturers, including Suzuki Taiwan, Yamaha, and Aeon.

Demonstrating Platform Viability

“It was, in essence, a circuitous route to demonstrate the platform’s feasibility,” Luke stated. “We had to develop our own vehicles and retail chain, and now we support 400,000 customers and 2,000 stations. This proven track record enabled us to collaborate with these larger partners, allowing us to provide them with data on unit economics, durability, station performance, and overall functionality. It required several years of preparation, but we were ready to scale in a significant way.”

DCJ’s First Electric Motorcycle

DCJ, which produces approximately two million motorcycles annually, will be venturing into electric motorcycle production for the first time through this joint venture. “They have been seeking technology to facilitate their transition to electric mobility, and we have been in discussions with them for nearly two years to demonstrate that our platform is the optimal choice for initiating this transition,” Luke explained.

Yadea’s Battery Innovation

Yadea sold over 10 million electric two-wheelers in 2020 and is seeking an alternative to traditional lithium-ion batteries. Alongside Aima, Yadea is recognized as a leading provider of affordable electric two-wheelers in China, while Niu dominates the premium segment.

Investment and Backing

Since its founding in 2011, Gogoro has secured approximately $480 million in funding from investors including HTC, Temasek Holdings, and Generation Investment Management (GIM). GIM is a green tech investment firm co-founded by former United States Vice President Al Gore.

A Sustainable Revolution

In a press release, Gore, who serves as GIM’s chairman, commented, “Gogoro’s partnership with Yadea and DCJ in China, building upon their existing collaboration with Hero MotoCorp in India, clearly indicates that the world’s leading two-wheel manufacturers are actively contributing to the sustainability revolution in Asia through the implementation of smart battery swapping.”

Correction: Kymco removed from list of Gogoro’s partners.