Lohum & ACKO Forge Partnership to Recycle & Reuse Batteries to Aid EV Adoption

LOHUM & Altigreen Sign Strategic Partnership for Low Carbon Recycling of 1 GWh EV Batteries

Lohum, a producer of sustainable energy transition materials,  and ACKO, a tech-first insurer, have joined hands in partnership to recycle and reuse batteries that will lead to faster adoption of electric vehicles in India.

As per the firms, this is the first time for an association for EV battery insurance in the country to include provisions for reusing and  recycling of the batteries. In addition, the collaboration will benefit EV battery OEMs that have their products underwritten by ACKO. This will provide easy access to Indian EV customers, battery OEMs, dealerships, and all ecosystem stakeholders to advanced aftermarket services.

The partnership will help optimize the battery insurance and financing costs for the customers.  This will make the purchase of electric vehicles more affordable and reduce the insurance cost. It  will hence pave the way for Lohum to partner with OEMs in the future to launch battery buy-back  products for customers and improve the overall vehicle resale value.

In line with the Government’s FAME-India Scheme, the industry has seen a spike in demand and sales of electric vehicles. Consequently, India foresees 2023 as the record year of EV sales. However, there is considerable skepticism  among individuals toward various aspects of owning an EV.

This is also highlighted in the ‘Future Is Electric’, a report by ACKO, where 60% of respondents  think the ecosystem needs to be better equipped to support Electric Vehicles. One of the most  significant barriers to EV ownership is the cost of battery replacement, as the battery contributes  to a substantial part of the cost of an EV. Despite the challenges, the silver lining is the optimism  among owners and intenders, where 89% believe India will be equipped by 2030 with an EV friendly space.

Under the partnership, ACKO will continue to provide performance warranty insurance for EV batteries to multiple OEMs and offer a hassle-free redressal experience in case  of performance-related issues. In addition, Lohum will work towards collecting, repurposing, and recycling used batteries that will come back as a result of liability from the product, thereby  reducing the environmental impact and producing sustainable Lithium-ion raw materials for new  batteries.

Commenting on the partnership, Rajat Verma, Founder & CEO of Lohum, said, “We are  delighted to partner with ACKO to weave sustainability into India’s first EV battery performance  warranty insurance. We applaud ACKO’s emphasis on performance warranty, which ensures that  customers get immediate replacements as soon as the battery performance drops even by a small  margin over time. This partnership aligns with our vision of lowering the carbon emissions of EV  batteries and building customer-centric solutions across the battery materials supply chain. It is  a testament to both companies’ commitment to creating a greener tomorrow.”

“The Battery Waste Management Rule of 2022 says that it is imperative to have end-to-end  tracking of batteries to ensure safe disposal. Our strategic partnership with Lohum will help OEMs  comply with the necessary EV-specific rules, which will act as a catalyst for achieving network  effects and efficiency in the Indian circular economy and act as a stellar nursery for India’s EV  ecosystem,” said Animesh Das, Chief Underwriting Officer, ACKO.

Earlier, Mercedes-Benz Energy and Lohum entered into a strategic partnership for second-life batteries. The agreement is a multi-year supply contract agreement, under which Mercedes-Benz Energy and Lohum have committed to a minimum offtake schedule of 50 MWh per annum across multiple second life module variants. Lohum is Mercedes-Benz Energy’s first partner in Asia.

Lohum is a startup that offers lithium-based Energy Storage Solutions and develops second life applications primarily aimed for the Indian stationary and non-auto mobility storage markets.