Lohum, a renowned manufacturer of sustainable energy transition materials, and ACKO, a tech-first insurance company, have joined together to recycle and reuse batteries. This collaboration for EV battery insurance will include provisions for battery reuse and recycling.
According to Lohum, the agreement would assist EV battery OEMs whose products are backed by ACKO by providing them with simple access to enhanced aftermarket services for Indian EV customers, battery OEMs, dealerships, and all ecosystem players.
ACKO will continue to provide performance warranty insurance for EV batteries to numerous OEMs as part of the collaboration, as well as a hassle-free redressal experience in the event of performance-related difficulties. Furthermore, Lohum will work to collect, repurpose, and recycle used batteries that will be returned as a result of product liability, in order to reduce environmental impact and produce sustainable Lithium-ion raw materials for new batteries, according to the release…
The objective is to maximise the salvage value of ACKO’s full portfolio of underwritten batteries while also adding sustainability to an already unique and consumer-centric offering.
Customers’ battery insurance and finance expenses will be reduced as a result of the collaboration. This will make electric car purchases more affordable and lower insurance costs. It will help in the future when partnering with OEMs to launch battery bay-back products for customers and improve overall vehicle resale value, according to the release.
“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,” stated Rajat Verma, Founder & CEO of Lobum.
Animesh Das, Chief Underwriting Officer of ACKO, stated,
The Battery Waste Management Rule of 2022 states that end-to-end tracking of batteries is required to guarantee safe disposal. Our strategic relationship with Lohum will assist OEMs in complying with the essential EV-specific standards, acting as a catalyst for attaining network effects and efficiency in the Indian circular economy and serving as a superb nursery for India’s EV ecosystem.”
The sector has experienced an increase in demand and sales of EVs as a result of the government’s FAME-India Scheme. Indians are growing more environmentally concerned, and India expects 2023 to be a record year for EV sales. Individuals, however, are sceptical about many elements of owning an EV, as shown in ACKO’s ‘Future Is Electric’ research, where 60% of respondents believe the ecosystem has to be better suited to accommodate EVs.
The expense of battery replacement is a significant barrier to EV ownership, since the battery accounts for a significant portion of the cost of an EV. Despite the challenges, the silver lining is the optimism among owners and Intenders, with 89% believing India will be a global economy by 2030 in an EV friendly space, the release said.
