In a conversation with Nitisha Dubey from EFY, Rohan Singh Bais from Zipbolt reveals innovative battery recycling process. By leasing lithium-ion batteries and harnessing AI-driven lifecycle management, the company partners with Ziptrax to extract lithium, cobalt, and nickel with 99% purity—setting a new standard for sustainable battery recovery.
Q. What makes Zipbolt’s Battery Intelligence and EV Lifecycle management process so effective?
A. At Zipbolt, we focus on technology for EV lithium-ion batteries, addressing EV-related issues like slow adoption, high replacement rates, warranty concerns, battery fires, safety assessments, health monitoring, and lifecycle management. We offer battery packs on lease and provide a smart battery intelligence backend with AI-driven SaaS for lifecycle management. We also offer end-of-life waste management, as once batteries become waste after about three to five years of service, we pass them to our recycling company, Ziptrax Cleantech. Ziptrax is a recycling and recovery pioneer that excels in safely and scientifically handling and processing LiB waste, with its patented technology for recycling batteries and extracting lithium, cobalt, and nickel with 99% purity.
Q. What types of batteries does Ziptrax recycle?
A. Ziptrax recycles all types of lithium-ion batteries, originating from various chemistries, such as LCO, LFP, NMC, LMO, Li-S, sodium ion, and nickel metal hydride, and not just EV batteries. Founded in 2016, Ziptrax initially focused on mobile batteries and later expanded to energy storage and mobility batteries as EV adoption grew in 2019. The company has its patented tech for high recovery using Direct-Hydromet, making it suitable not just for current battery types and chemistry but also for future kinds of lithium-ion batteries.
Q. How does Zipbolt improve battery lifecycle management?
A. From our technology perspective, we offer AI-as-a-service with our battery intelligence technology. This technology integrates GenAI and machine learning with battery lifecycle management, resulting in several benefits. These features enhance battery thermal safety and security through asset tracking and improve battery servicing. Better servicing, facilitated by data analytics, helps extend the lifecycles of batteries and vehicles. Additionally, Zipbolt’s technology enables the valuation and replacement process for retired EV batteries and offers them a life extension as a second life battery. For instance, after three to five years of service (as per EV OEM), the buyback value of batteries can be assessed using our AI diagnostics and valuation services. This is similar to the valuation process in the second-hand cars market for ICE vehicles or consumer gadgets like mobile phones and tablets on e-commerce portals. By offering battery assessment and valuation, we bring EV customers the benefit of buyback value, ensuring maximum value for their asset as well as lowering EV total cost of ownership. This comprehensive approach improves the lifespan and economic value of batteries and vehicles.
Q. How does Zipbolt’s lease model address financial barriers to EV adoption?
A. At this stage, we offer both hardware and software products. Our software is exclusively paired with our battery packs, which are available on a lease plan model. This approach makes it more affordable by allowing monthly rental payments, addressing one of the financial barriers to electric mobility adoption. The higher upfront cost of Electric vehicles, typically 40% to 50% more than internal combustion engine vehicles, has kept the pace of adoption slow, below 10% for 2W Electric adoption and below 20% for 3W Electric vehicles. Hence, we modified the offerings on Zipbatteries into an OPEX or lease model, and we include AI-driven B2B SaaS Software. Although presently tied to our batteries, we plan to expand this AI SaaS offering to other segments and players, allowing those not using Zipbatteries to benefit from our software, ZipSure & AI-driven services.
Q. How does Zipbolt manage battery production?
A. We have begun contract manufacturing with battery pack assembly companies with significant capacity. For instance, while we currently aim to deploy 1000 batteries, our partners can scale up annual production to even 5000 packs, without requiring Zipbolt to expand our CapEx or manufacturing infrastructure. We position ourselves as a design-led innovator company. Regarding deployment, we primarily focus on the B2B space, collaborating with companies in battery swapping, EV fleet ecosystems, NBFC Financing and Insurance Co. Additionally, we are working with select OEMs to integrate our battery intelligence technology into their existing batteries for four-wheelers, eBuses and three-wheelers.
Q. Who is Zipbolt’s target audience?
A. Our target audience includes OEMs, battery-swapping companies, EV operators, and financing companies. Recently, insurance providers have also shown interest in our AI-ML-based data models for reliable EV diagnostics, Health Monitoring and Underwriting audits.
Q. What is the name of the software?
A. The software is named ZipSure AI, and we plan to make it available independently soon. We will roll it out within the next six months. We are still assessing the scale of deployment, which will guide our backend integration accordingly.
Q. How does the battery software collect and display real-time data?
A. The ZipSure AI can collect battery data from both smart and non-smart batteries, using telematic devices such as IoT systems or through API-linked to our Cloud servers, such as those hosted on AWS. This data is minute-by-minute real-time information if connected via API and is then projected onto our dashboard and mobile app platforms.
Q. Who is the target market for the Battery Intelligence Software?
A. Currently, this is not intended for end customers in private mobility; it is purely a B2B offering. We specifically target batteries used in two-wheelers, three-wheelers used in commercial mobility, and for energy storage systems as we focus on large-scale adoption. Our clients are exclusively from the commercial segment, with mandates to deploy thousands or even tens of thousands of EVs and batteries.
Q. What companies are you currently collaborating with?
A. We have plans to deploy more than 1000 Zipbattery systems in just the current year of commercial operations. Since 2022, we have been collaborating with multiple companies, including Mahindra, Tata Motors, Oye Rickshaws, OK Play E-rickshaws, Hero Electric, and other OEMs and operators in the industry. While Zipbolt is in the startup phase and has recently begun onboarding these companies, deploying over 100 systems, once our software is fully launched, we aim to target a broader range of companies operating in the EV fleet and EV battery sectors, targeting 50,000+ SaaS vehicle users by 2027.
Q. How do you ensure real-time tracking and security for batteries?
A. We collaborate with multiple companies to meet their specific requirements. For instance, we work with OkPlay, which provides three-wheelers and requires a battery-swapping solution to lease out the batteries. We start by integrating with their order process. If they look at 100 units, we plan for about 130 to 140 batteries to ensure availability. We then onboard them as subscribers, allowing them to connect their login with their API ecosystem to access available data. Sometimes, the data comes directly from the battery if the company already has connected systems with built-in IoT for the battery. If not, we can provide the necessary IoT kits, although it adds to the hardware cost. Once the IoT system is in place, it integrates all their vehicles onto the cloud servers. In terms of battery leasing, tracking the batteries is crucial for ensuring asset safety and security. This is particularly important because we operate in the Delhi-NCR region and must monitor these assets in real time. This stringent tracking is essential to ensure timely monthly payments for battery rentals.
Q. How is the monthly payment for the battery subscription calculated?
A. On a unit scale, we reduce the upfront cost of the vehicle. For example, if a vehicle costs `1,00,000, with the battery costing `30,000 to `32,000, we eliminate the battery cost from the vehicle’s price. Instead, it becomes part of a subscription plan. This plan includes interest over a three-year term, which is divided by 36 months. Consequently, the monthly payment comes to approximately `1500.
Q. What are the benefits of leasing batteries for electric vehicles?
A. In the context of two-wheelers and three-wheelers, these vehicles are typically used multiple times a day. Unlike battery swapping, where you replace a discharged battery at a swapping station, these batteries are designed to be used continuously. When a battery is swapped out, it can be recharged and utilised by another user, sometimes even twice a day. The batteries are specifically designed to be compatible with the vehicles they power. Often, these vehicles will have multiple batteries, and the swapping system accommodates various types of batteries. Some batteries might come with the vehicle, while others are added to extend the range and increase uptime. This system is especially beneficial for commercial applications where additional battery support is essential. Companies lease these batteries monthly, allowing them to be used as many times as needed—whether it is 30 or 60 times a month, depending on their requirements. This flexible usage model ensures that the batteries are fully utilised to meet the demands of the vehicles.
Q. Can you lease your battery on a monthly basis?
A. Yes, the contract is on a monthly basis, typically lasting from one to three years. The batteries can be used multiple times daily, charging and discharging as needed. The utility is flexible, allowing for efficient use according to their requirements.
Q. How does battery pricing vary across different vehicle segments?
A. We operate in multiple segments, so there is no single price for two-wheelers. Each type of vehicle has different pricing. For two-wheelers, battery pack sizes are typically 1.5 or 2 kilowatt-hours. For three-wheelers, battery packs can range from 3 to 5 kilowatt-hours, sometimes around 4 kilowatt-hours. For loaders, battery packs may range from 7 to 10 kilowatt-hours. Consequently, pricing varies by segment and vehicle type, with a typical cost of about 15 rupees per watt-hour.
Q. What are your main revenue streams?
A. We charge for the batteries on a leased-out model on a rental basis. So, that is a monthly subscription for the battery pack. There is also a component of a monthly subscription for the software.
Q. How are your batteries tailored for specific systems?
A. These batteries are specifically designed for each system. For example, if we collaborate with Oye! Rickshaw, we provide 3-kilowatt-hour batteries tailored to their required shape and size. We establish agreements with the company and our contract manufacturer, ensuring the batteries are custom-made to fit that company’s needs.
Q. How do you customise batteries for different customers?
A. Our batteries are customised according to the customer’s requirements. For example, they may want a two-year or three-year lease term, while loaders might require a five-year lease term. During the design process, we consider the types of lithium-ion cells to be used, as different cells have varying life cycles and performance times. We tailor the battery packs to fit their existing vehicles, ranging from 1000 to 5000 units, ensuring compatibility.
Q. How do you handle data management?
A. We host our AWS and Google Cloud servers, running all our AI and machine learning algorithms in the cloud. These highly scalable cloud-based systems allow us to deploy 100 systems today and easily expand to one lakh systems tomorrow. This scalability provides significant flexibility.
Q. What are the primary challenges faced by your startup?
A. The primary challenge we initially faced was the uncertainty about which types of electric vehicles would emerge. The situation was highly unpredictable when we started in 2021, just after the pandemic and the second lockdown. However, this challenge has largely been addressed over time. We now see that various categories of EVs are being adopted, and there is a clear roadmap for electrification over the next five or six years, which is expected to expand the market significantly. Aside from that, we encounter typical startup challenges like securing investment. Attracting the necessary talent and resources is also crucial. These are general challenges for startups rather than being industry specific.
Q. What cities are you targeting for your EV infrastructure partnerships?
A. Using a franchise model, we collaborate with numerous partners, including companies and vendor partners. This approach allows us to provide them with a complete supply of batteries, IoT systems, and chargers, enabling them to establish their own battery-swapping stations. We are finalising agreements with about five partners in the Delhi NCR region. Additionally, we are partnering with more businesses in cities like Pune, Lucknow, and Kolkata, where EV adoption is accelerating. Local entrepreneurs are keen to enter the electric vehicle and battery ecosystem and are willing to invest. We are excited to work with these smaller, local entrepreneurs as it helps us create a network effect.
Q. Do you manufacture your batteries in-house?
A. Currently, we manufacture all our batteries in-house. As we scale up, we have partnered with contract manufacturers with higher production capacities who can build to our design and specifications. We design these intelligent, IP-rated batteries that can be scaled as needed. This year, we aim to bring 1000 batteries to market, creating a foundation for expanding our software and inspiring others in the industry.
Q. Do your contract manufacturers source battery components domestically or internationally?
A. Currently, we are collaborating with various component manufacturers in India for the BMS, battery casing, thermal management, and IoT devices. While these parts are sourced domestically, the cells themselves are imported. We use cells from Tata Motors and Mahindra vehicles, predominantly Chinese, Korean, or European-made. However, the interesting development is our connection with domestic cell manufacturers, who are expected to start production in the second half of this year, enabling us to source cells locally.
Q. What percentage of the battery pack is imported?
A. The cost of the cells is significant, making up about 75% of the total pack cost. Approximately 30% of the content is domestic, while the remaining portion, which consists of the cells, is imported. Once cell manufacturing begins in India, more companies will start using locally made cells, reducing the overall percentage of imported content.
Q. Which cities are you serving throughout India?
A. We currently operate in Delhi NCR, specifically in South Delhi, Central Delhi, and Gurgaon. We are expanding across the entire Delhi NCR region. In terms of future investment, we aim to raise about 10 million in the next two years to target the top five cities, including Pune, Hyderabad, Bengaluru, and Kolkata.
Q. How much investment has been made in developing Zipbolt?
A. We have received an initial investment of about 5 million, with 2.5 million coming from our incubator and another 2.5 million from other sources. We are raising an additional $1 million to scale up our capabilities, as we need to deploy 1000 more batteries and target 10,000 customers for our AI SaaS. Over the next five years, we aim to target around 2 million vehicles, expecting significant revenue growth.
Q. What are your turnover growth targets for upcoming years?
A. Last year, our total seed turnover was 2.5 million. This year, we aim for 10x growth, targeting around 25.3 million. We expect another 5x to 10x increase in the next two years, aiming for a turnover of around 500 to 700 million within three years.
Q. What inspired the name and concept of your company, Zipbolt?
A. The name originated from our concept of the Electric Vehicle, typically associated with speed—a ‘Zippy’ vehicle, and since we focus on battery technology, representing the ‘bolt’ or power. Our company is based out of Gurgaon, with an office at India Accelerator on MG Road, Gurgaon. We are two founders, me, and Mrs. Sonia Singh, who handles business operations. Currently, we are scaling from seven employees to a team of 40+.
