Horace Luke: Great question. So as you look at Taiwan, one of the fundamental reasons — several fundamental reason where we do actually carried CapEx in Taiwan. The first really had to do with the fact that we’re such an early mover that we had to actually prove out the technology, prove out the fact that we can actually have sticky subscribers on our network. They are paying for these batteries over time. And today, I think we’ve been able to do that very successfully. The second thing is that led us to make a decision to carry the CapEx on the network in Taiwan is because in Taiwan, very much like Japan and other parts of kind of the Northeast Asia, the interest rate and the cost of capital is just so low when it comes to basically debt capital.
So for us, the ability to actually leverage that and actually create more value in the company was — definitely was something that we talked about a lot and we made a conscious decision to carry CapEx in Taiwan. But when it comes to going overseas, a place like India where easily, it sells 20 times more vehicle per year than the island of Taiwan or in markets like Southeast Asia, where there will be just a lot of other, I would say, markets that are also very much larger than Taiwan. Putting that all on gearing that CapEx on our own would not only be not — doesn’t make financial sense, but also as well as very expensive. So for us, we’ve been actually in talks with several partners in which they — we would then basically divide and conquer, in which we will be able to actually have partners also put in the capital to do such — to deploy the network.
So I can’t speak too much detail about as to how we’re going to do that. But the idea is for Gogoro to expand, not using our own capital going into those markets but instead, basically creating a winning situation with the partner to do so.
Michael Bowen: Operator, do we have any teed up? We have another online question, if not?
Operator: [Operator Instructions] I’m showing no phone questions at this time.
Michael Bowen: Okay. We have another online question. So the question is, could Gogoro sell batteries, energy storage solutions directly to customers and businesses around the world and say, like the way Tesla has their energy storage products like Powerwall and Powerpack Europe and US are huge markets for battery energy storage. So, could you elaborate on that? thank you.
Horace Luke: Great. Our main focus when we started the company is really to progress sustainability and apply every technology and every product that we do to do so. In Taiwan’s case, I’ll use Taiwan is an example first, in Taiwan’s case, the primary use of the battery and you have to remember, they’re kind of portable power packs at the moment, the primary use is really for mobility where somebody would use the battery to basically go from point A to point B and in the vehicle mainly. But on the side, waiting for the soft our batteries are idling on the — on what we call the rack side, which is the station side. There’s plenty of opportunity for those batteries to really work in partner with the grid to do ancillary services such as demand response or frequency response.
