Lohum Expands Nickel Production, Eyes Lithium in Global Push to Reduce China Dependence
By Ian Williams, manager
updated:
IIndian essential minerals producer Lohum is vigorously seeking the acquisition of nickel mines in Indonesia and the Philippines, targeting a tenfold production increase to cater to the soaring demand for battery minerals, according to its founder and CEO, Rajat Verma. In a tactical move to sustain its swift economic growth, India is focusing more on the renewable energy and electric vehicle sectors.
By boosting domestic production of vital raw materials like nickel, India aims to reduce its dependency on Chinese imports. Verma revealed that his company intends to increase its nickel production at their Gujarat facility from the current 1,000 metric tons to 10,000 metric tons annually over the next 18 months. This expansion will enable the company to play a central role in the market for eco-friendly technologies. To support this growth, the company plans to raise 10 billion rupees ($105 million) in equity and an additional 20 billion rupees through debt over the next 12 to 18 months.
Verma confirmed ongoing discussions with potential investors, though he chose not to disclose their identities. Additionally, he suggested that the nickel production capacity could be further increased if the company succeeds in acquiring a superior mine, potentially leading to the establishment of a larger facility.
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China's control over supply chains is particularly evident in the realm of rare earths, which, despite their global distribution, pose significant challenges in commercial refinement. In addition to exploring for rare earths in Southeast Asia, Lohum is establishing a rare earth magnet factory in Uttar Pradesh, designed to produce 1,200 metric tons annually, according to Verma.
Currently, the exchange rate is one US dollar to 95.81 rupees.ing for rare earths in Southeast Asia, Verma said, and is setting up a rare earth magnet plant, also in Uttar Pradesh, with capacity of 1,200 metric tons a year.
($1 = 95.81 rupees)