Gogoro to execute $1.5B EV Mega Project in Maharashtra

The Indian State of Maharashtra and Gogoro Inc.(Nasdaq: GGR), a global leader in battery swapping ecosystems, have announced a partnership to establish an ‘Ultra Mega Project‘ in the state. The project aims to manufacture vehicles, smart battery packs, and battery swap stations, as well as deploy an open and accessible battery swapping infrastructure in Maharashtra. The investment plan for the project’s Phase 1 spans eight years and exceeds $1.5 billion.

Under the agreement, Gogoro will invest more than $500 million in manufacturing and $1 billion in smart battery infrastructure deployment. The Maharashtra government will provide financial incentives and reimbursements to support the project. It follows a memorandum of understanding (MOU) signed between Maharashtra and Gogoro at the Davos summit in January 2023.

The announcement was made, at a Maharashtra State Government press conference, by Chief Minister Shri. Eknath Shinde. Maharashtra’s government sees Ultra Mega Projects as significant strategic investments exceeding $500 million, which typically receive incentives to ensure successful execution. Gogoro’s request for financial incentives has been approved by the Maharashtra state cabinet, and both parties expect to finalize the agreement soon. The Ultra Mega Project agreement is considered one of the largest electric vehicle (EV) investments in India’s history. This partnership is expected to create approximately 10,000 direct and indirect jobs in the state.

“In line with the vision set by our Hon. Prime Minister Shri. Narendra Modi, Maharashtra, is fully committed to help build a green and sustainable future for our state. I am delighted to announce that today we approved an ultra mega project with Gogoro, a Nasdaq-listed, global two-wheel EV company,” said Devendra Fadnavis, The Deputy Chief Minister of Maharashtra. The state aims to create a smart battery ecosystem with Gogoro, allowing for the local manufacturing of world-class EVs and contributing to job growth in the smart energy, EV, and sustainability sectors.

Gogoro plans to establish a smart energy infrastructure in Maharashtra, featuring open and accessible battery swapping and smart battery stations. The deployment of this infrastructure is expected to accelerate job growth and attract foreign direct investment into Maharashtra’s supply chain capabilities and smart battery infrastructure. “Building on Gogoro’s successful deployment of an open battery swapping network that supports multiple vehicle makers in Taiwan, we plan to proceed in partnership with the Maharashtra government to bring Gogoro vehicles, smart batteries and swap stations to India starting with the state of Maharashtra. We are focused on creating a domestic supplier ecosystem that allows for domestic growth and foreign market expansion,” said Horace Luke, Founder and CEO of Gogoro.

The battery-swapping infrastructure is set to commence deployment in late 2023 and will leverage Gogoro’s smart energy ecosystem, including smart battery stations, swapping technologies, and network management solutions. This infrastructure will contribute to smart city design and development, energy storage stations, smart mobility sharing, smart EVs, demand response services, distributed energy storage, and other applications.

Though with a population of over 120 million, Maharashtra is India’s largest economy and industrialized state, with 16% of the country’s industrial output and a gross domestic product (GDP) of over $450 billion, it is important to note that the finalization and implementation of the Ultra Mega Project Investment Plan are subject to various conditions, including the execution of definitive agreements, due diligence, funding procurement, board approval from Gogoro, and obtaining necessary governmental approvals in Maharashtra and Taiwan, where relevant. There is no guarantee that a definitive agreement will be reached or that the project will be implemented as outlined in the announcement.

Also Read: Maharashtra Electric Vehicle Policy -2021

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