LOHUM and ACKO partner to Recycle and Reuse batteries covered under EV Extended Battery Warranty Insurance

Bangalore, May 2, 2023: LOHUM, India’s largest producer of sustainable energy transition materials, and ACKO, the tech-first insurer, join hands to EV Battery recycling and reuse batteries that will lead to faster adoption of Electric Vehicles in India.

The exclusive partnership is a significant milestone for the EV industry, as it marks the first time an association for EV battery insurance in the country included provisions for reusing and recycling of the batteries. In addition, the collaboration will benefit EV Battery recycling 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 for EV Battery recycling will help optimize the battery insurance and financing costs for the customers. This will purchase electric vehicles more affordable and reduce insurance costs. It will hence pave the way for us 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. 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.

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.

LOHUM and ACKO aim to ensure customers have complete peace of mind in their overall EV buying journey. 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. 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 & 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.

The association is a promising start to a long-term partnership to revolutionize the industry and promote environmentally responsible practices.

About LOHUM

LOHUM is India’s largest producer of sustainable energy transition material, and the only integrated battery material recycling, reuse, and low-carbon refining company in the world.

Recognized as ‘The Most Innovative Company of the Year 2022’ by The Confederation of Indian Industry (CII), LOHUM is committed to making battery materials last forever. An engine of innovation, LOHUM’s R&D focus is driving sustainable climate technology.

LOHUM’s NEETM™ Lithium-ion battery material recycling and extraction technology yields top-quality materials and produces zero waste. Its DETX™ battery price index makes it easy to determine accurate prices of battery material and provides ‘future’ buyback prices. LOHUM is slated to prevent over 4 Million Tons of CO2e by 2026.

About ACKO:

ACKO is the tech first insurance company with its entire operations offered through the digital platform. Founded in 2016 by Varun Dua and Ruchi Deepak, ACKO’s entire process is designed to provide a better customer experience and to eliminate the pain points associated with the traditional model, with processes that require zero paperwork, from purchases and claims to renewals. ACKO has pioneered the direct-to-consumer auto insurance space in the country. It also has one of the largest market shares in embedded insurance products like mobility and gadget insurance in partnership with 50+ leading players in the internet ecosystem such as Ola, Oyo, redBus, Zomato, HDB Financial Services and Urban Company. Within two years of its launch, ACKO’s Group Health Insurance product has on-boarded 200+ new age, people-first companies including Swiggy, Razorpay, and CRED and insured nearly 8+ lac lives. In a span of 5 years of operations, the company has distributed insurance policies to over 78+ Mn unique customers and issued 1 Bn+ insurance policies.