New Delhi: Lohum, which is also a key producer of critical minerals in India, is discussing acquiring nickel mines in Indonesia and the Philippines as part of its expansion to increase production capacity tenfold, according to the company’s chief executive and founder, Rajat Verma.
The decision comes as part of a nationwide initiative to diversify the adoption of renewable energy and electric vehicles and reduce dependence on Chinese manufacturers of the raw materials for such sectors. Nickel is an essential metal in battery production and the secure and uninterrupted supply chains that are not of Chinese origin are a top priority for New Delhi.
Within the next 18 months, Verma said, Lohum wants to raise the production of nickels to 10,000 metric tonnes per year. Its current production capacity is merely 1000 tons per year which is received by processing recycled materials at its facility in Gujarat. In order to fund the expansion, Verma said that Lohum will be raising 10 billion rupees (about $105 million) in equity capital and 20 billion rupees in debt in the next year to year and a half.
If successful in acquiring the appropriate mining assets overseas, capacity may be further increased beyond the current target,” he added. It might be worth the investment to expand processing capacity from the original plans, if a good-quality mine could be developed, he added.
Nickel is not the only critical mineral that is in the spotlight for Lohum. It is also preparing to enter into the lithium production business with a $100 million investment in Zimbabwe, where it has ten blocks of lithium mining rights valued at between 30 million and 40 million tons of ore. This week saw Lohum become the first Indian firm to export lithium ore from an overseas mine and a milestone for the firm as it made a step towards processing the raw material into lithium sulphate before sending it to India for further purification in battery-grade lithium carbonate.
The nickel and lithium developments highlight India’s broader push to create a critical minerals sector that is self-sufficient, capable of supplying the country’s rapidly expanding EV and clean energy demand without relying on Beijing.
