May 4, 2023: Indian recycler Lohum said on May 2 it was teaming up with insurer ACKO for what the firms say is a pioneering EV battery warranty insurance partnership.
Lohum said the move will pave the way for future partnerships with OEMs to launch “battery buy-back products” and improve the resale value of vehicles.
The collaboration will also benefit EV battery OEMs that already have their products underwritten by ACKO.
Under the partnership, ACKO will continue to provide performance warranty insurance for EV batteries to multiple OEMs and “offer hassle-free redressal” in the event of performance-related issues.
Meanwhile, Lohum will work towards collecting, repurposing, and recycling used batteries that are returned as a result.
Lohum founder and CEO Rajat Verma said the partnership “weaves 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.”
Animesh Das, ACKO’s chief underwriting officer, said the introduction of the 2022 Battery Waste Management Rule in India required end-to-end tracking of batteries to ensure safe disposal.
“Our partnership with Lohum will help OEMs comply with the necessary EV-specific rules.”