EV maker Spiro scales up to next level

June 10, 2025

From the newsletter

Electric motorcycle company Spiro has made an order for LFP electric motorcycle batteries worth $11.6 million from Chinese manufacturer CBAK Energy Technology, Inc. The order consists mainly of CBAK's advanced Model 32140 large LFP cylindrical batteries, and the Nasdaq-listed company expects follow-up orders that could total up to $55 million.   

  • A brand-new pack of 3.2V 15Ah Model 32140 large LFP cylindrical batteries costs about $107 on AliExpress. For $11.6 million, using that price as an example, it means the company is purchasing at least 108,000 battery packs, underlining the scale of the order.  

  • The advent of electric motorcycles is proving to be a major draw for riders due to low operational costs. Companies such as Spiro, which is now in seven African countries, are racing to meet this demand. 

More details

  • Spiro will use the batteries to assemble thousands of electric motorcycles at its assembly plants located in multiple countries in Africa. The company has assembly plants in Kenya, Benin and Togo. 

  • It plans to build a plant in Uganda with a capacity to produce 50,000 electric motorcycles annually. But it is in Nigeria where the company is building a 100,000-capacity assembly plant, which will be the largest in Africa. 

  • “Our collaboration with CBAK Energy is a critical milestone in expanding Africa’s electric mobility infrastructure,” said Spiro CEO Kaushik Burman. “By combining their battery technology with Spiro’s extensive energy network, we are setting the foundation for a sustainable, continent-wide shift towards clean transportation.” 

  • This comes at a time when global prices of batteries are plummeting, which will drive down EV prices. After a temporary increase in 2022 due to rising raw material costs, battery prices have resumed their sharp downward trajectory. 2024 saw the largest annual drop since 2017, with lithium-ion battery pack prices falling by 20% to a record low of $115 per kWh. 

  • Lower battery prices will enable African EV companies like Spiro to reduce prices, which could help grow sales faster and fuel further expansion. Spiro has been expanding rapidly across Africa, entering the Cameroon and Tanzania markets last month. 

  • The company, owned by Dubai-based investment firm Equitane, has raised significant amounts of capital for expansion, including a $50 million loan from Afreximbank and a $63 million loan from Societe Generale. In addition to these debt facilities, Spiro is also actively seeking to raise between $100 million and $150 million in equity financing to fund further expansion into new African countries. 

  • Africa's electric battery demand is growing, driven by the electrification of transport and energy storage needs. While the continent currently represents a small fraction of global battery demand, it's expected to increase significantly by 2030, with stationary BESS and electric two and three-wheelers being key demand drivers. 

  • China is the leading source of batteries used to power electric vehicles, light electric vehicles, electric tools, energy storage, uninterruptible power supply (UPS), and other high-power applications. Other leading battery producers are the US, Germany and South Korea. 

Our take

  • The sharp decline in LFP battery prices will directly translate into lower manufacturing costs for electric motorcycles. This cost reduction will likely be passed on to consumers in Africa, making electric motorcycles even more affordable than their fuel-powered counterparts. 

  • As Africa’s electric motorcycle industry grows, there is potential for further localisation, including the development of local component manufacturing, as the market matures and demand for electric mobility solutions continues to surge across Africa. 

  • Morocco is establishing a major industry for electric battery production in Africa. In future, Africa should be able to look inwards for electric mobility solutions where local companies can be able to find the components they need for assembly or manufacturing within the continent.