Gogoro, the Taiwanese electric scooter and battery manufacturer, has entered into a memorandum of cooperation (MOU) with Sumitomo Mitsui Financial Leasing Co. (SMFL), a subsidiary of the vast Sumitomo Mitsui Group. This partnership is set to explore the expanded use of Gogoro’s innovative smart batteries in various sectors including travel, business applications, and battery recycling.
While the specifics of the collaboration remain under wraps following the MOU, the agreement sparks significant potential for both companies, especially as industries worldwide shift towards low-carbon solutions. The Sumitomo Mitsui Group, with its extensive network of over 900 subsidiaries across diverse fields such as transportation, energy, and electronics, is well-positioned to integrate Gogoro’s battery technology into its broad spectrum of services.
One of the primary focuses of this partnership will be on developing a sustainable circular economy model for batteries. According to Gogoro CFO Bruce Aiken, SMFL is exploring ways to give retired batteries from electric vehicles a second life in applications that require less intensive power usage, such as energy storage and low-voltage solutions. This initiative could significantly reduce upfront costs and environmental impact, aligning with global sustainability goals.
Additionally, the collaboration might revive plans for a scooter-sharing venture. Gogoro and Sumitomo Mitsui had previously considered a partnership for the GoShare service in Japan back in 2017, which ultimately did not materialize. However, with the new MOU, there is renewed potential for expanding the scooter-sharing model to new international markets, providing both firms a cost-effective entry into emerging economies.
This strategic partnership marks an important step for Gogoro as it seeks to broaden the application of its battery technologies beyond its core scooter business into global markets, driving forward the adoption of greener technologies in the automotive and mobility sectors.
