Together, a tech-first insurance company ACKO, and Lohum, a top manufacturer of materials for the transition to sustainable energy, are working to recycle and repurpose batteries. This cooperation for EV battery insurance will provide provisions for battery reuse and recycling.
The partnership will help EV battery OEMs whose products are supported by ACKO by providing them simple access to Indian EV customers, battery OEMs, dealerships, and all ecosystem players, according to Lohum in a press statement.
As part of the cooperation, ACKO will keep offering performance warranty insurance for EV batteries to various OEMs and provide a hassle-free redressal process in the event of performance-related concerns. According to the press announcement, Lohum will also seek to collect, reuse, and recycle any spent batteries that are returned as a consequence of product liability in order to lessen their impact on the environment and provide sustainable lithium-ion raw materials for new batteries.
The objective is to add sustainability to the existing distinctive and customer-focused battery range of ACKO while maximizing salvage value.
The collaboration will assist in lowering consumers’ expenses for battery finance and insurance. As a result, buying an electric vehicle will become more affordable, and insurance costs will go down. The announcement noted that working with OEMs in the future to provide battery buy-back goods for consumers and raise the general car resale value will be beneficial.
According to Lohum’s founder and CEO, Rajat Verma, “We are thrilled to join with ACKO to weave sustainability into India’s first EV battery performance warranty insurance. We salute ACKO’s focus on performance warranties, which makes sure that clients receive prompt replacements as soon as the battery’s performance deteriorates even slightly over time. This collaboration is in line with our goal of reducing the carbon emissions produced by EV batteries while constructing customer-focused solutions for the entire supply chain of battery materials. Both businesses’ dedication to fostering a greener future is demonstrated by this.
The Battery Waste Management Rule of 2022 states that end-to-end tracking of batteries is essential to guarantee safe disposal. Our strategic cooperation with Lohum will assist OEMs in adhering to the appropriate EV-specific regulations, which will serve as a catalyst for attaining network effects and efficiency in the Indian circular economy and serve as a top-notch nursery for India’s EV ecosystem.
The price of replacing a battery, which makes up a significant portion of an EV’s cost, is a significant deterrent to EV ownership. The optimism among owners and intenders, which is 89%, is the silver lining despite the difficulties, the announcement added. They anticipate that by 2030, India will be an EV-friendly country.
