The partnership will help optimise the battery insurance and financing costs for the customers.
02 May 2023 | 2627 Views | By Autocar Pro News Desk
Lohum, sustainable energy transition materials producer, and ACKO, the tech-first insurer, have joined hands to recycle and reuse batteries, which will enable EV battery insurance in the country to include provisions for reusing and recycling of the batteries.
Under the partnership, ACKO will continue to provide performance warranty insurance for ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Lohum, sustainable energy transition materials producer, and ACKO, the tech-first insurer, have joined hands to recycle and reuse batteries, which will enable EV battery insurance in the country to include provisions for reusing and recycling of the batteries.
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.
In addition, the collaboration will benefit EV battery Original Equipment Manufacturers (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 optimise the battery insurance and financing costs for the customers. This will make the purchase of electric vehicles more affordable and reduce the insurance cost, and hence pave the way for partnering 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. Indians are becoming increasingly conscious about the environment, and India foresees 2023 as the record year of EV sales. However, there is considerable skepticism among individuals toward various aspects of owning an EV, as per the press release.
This is also highlighted in the 'Future Is Electric' 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.
The goal is to extract the maximum possible salvage value from ACKO's entire portfolio of underwritten batteries and add sustainability to the already unique and consumer-centric product.
Commenting on the partnership, Rajat Verma, Founder and 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.