Indian critical minerals producer Lohum is pursuing acquisitions of nickel mines in Indonesia and the Philippines as part of an ambitious expansion strategy aimed at meeting surging global demand for battery minerals. The company's founder and chief executive Rajat Verma disclosed the acquisition plans while outlining broader efforts to reduce India's dependence on Chinese supplies of critical raw materials essential for the transition to renewable energy and electric vehicle technologies. Lohum aims to increase its nickel production capacity to 10,000 metric tons annually over the next 18 months, representing a tenfold expansion from its current output of 1,000 tons per year.
The company currently processes recycled materials at its facility in Gujarat, in India's western region. Verma noted that if the company successfully acquires access to high-quality mines, the expanded nickel capacity could potentially exceed the 10,000 metric ton target. To fund its expansion plans, Lohum is seeking to raise 10 billion rupees, equivalent to approximately $105 million, in equity financing and 20 billion rupees in debt over a 12 to 18 month timeframe.
The company is in active discussions with potential investors, though Verma declined to identify them by name. Beyond nickel production, Lohum is pursuing diversification into lithium production, with plans to invest $100 million in Zimbabwe where it has secured rights to 10 lithium mining blocks containing estimated ore deposits of 30 million to 40 million tons. The company announced earlier this month its intention to become the first Indian company to produce lithium from an overseas asset, with operations in Zimbabwe processing ore into lithium sulphate before shipping to India for refinement into lithium carbonate destined for battery manufacturers.
The company is establishing a 5,000 metric ton per year cathode active material production facility in Uttar Pradesh, scheduled for commissioning by March. This plant will require both nickel and lithium as inputs. Additionally, Lohum is developing a lithium-ion battery-recycling facility in Sharjah, United Arab Emirates, in partnership with local government authorities, expected to commence operations by early next year.
Verma indicated that Lohum is also prospecting for rare earth elements in Southeast Asia and constructing a rare earth magnet manufacturing plant in Uttar Pradesh with annual capacity of 1,200 metric tons. This expansion addresses China's dominant position in critical mineral supply chains, particularly in rare earth refinement, which remains commercially challenging despite widespread global distribution of the elements. The moves reflect India's broader strategic objective to sustain economic growth through increased renewable energy adoption and electric vehicle deployment while developing domestic sourcing capabilities for critical minerals traditionally dependent on Chinese suppliers.
Source: kitco.com