Lohum and ACKO partner to recycle and reuse EV batteries under extended warranty insurance
Lohum, a leading producer of sustainable energy transition materials, and ACKO, the tech-first insurer, have joined forces to recycle and reuse batteries in Bengaluru. This collaboration for EV battery insurance will include provisions for battery reuse and recycling.
According to Lohum, the collaboration will benefit EV battery OEMs whose products are underwritten by ACKO by providing them with easy access to advanced aftermarket services for Indian EV customers, battery OEMs, dealerships, and all ecosystem stakeholders.
ACKO will continue to provide performance warranty insurance for EV batteries to multiple OEMs as part of the partnership, as well as a hassle-free redressal experience in the event of performance-related issues. Furthermore, Lohum will work to collect, repurpose, and recycle used batteries that will be returned due to product liability, reducing environmental impact and producing sustainable Lithium-ion raw materials for new batteries, according to the release.
The goal is to maximize the salvage value of ACKO’s entire portfolio of underwritten batteries while also adding sustainability to an already unique and consumer-centric product.
Customers’ battery insurance and financing costs will be reduced as a result of the collaboration. This will make electric vehicle purchases more affordable and reduce insurance costs. It will help in the future when partnering with OEMs to launch battery buy-back products for customers and improve overall vehicle resale value, according to the release.
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.”Animesh Das, Chief Underwriting Officer, ACKO, said,
“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,”
The industry has seen an increase in demand and EV sales due to the government’s FAME-India Scheme. Indians are becoming more environmentally conscious, and India expects 2023 to be a record year for EV sales. Individuals, however, are skeptical about various aspects of owning an EV, as highlighted in ACKO’s ‘Future Is Electric’ report, where 60% of respondents believe the ecosystem needs to be better equipped to support EVs.
The cost of battery replacement is a significant barrier to EV ownership, as the battery accounts for a significant portion of the cost of an EV. Despite the challenges, the silver lining is optimism among owners and intenders, with 89% believing India will be an economic powerhouse by 2030.
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Content Credit: ET Energyworld