Lohum will invest Rs 1,000 crore to develop and manufacture next-gen 'Manganese-rich' LMFP Lithium-ion batteries over the next three years. The plan as currently envisaged, will involve setting up a capacity of over 20 GWh.
The company has also roped in Tesla veteran Chaitanya Sharma to work on the development of next-gen manganese-based lithium-ion batteries.
The critical minerals recycling firm had earlier signed an MoU with the government of Tamil Nadu to build an integrated recycling and Cathode Active Material production facility in the state.
The next-generation LMFP - Lithium Manganese Iron Phosphate battery chemistry offers higher safety and gives EVs a longer range compared to conventional technologies. The batteries are also significantly cheaper. Some of the world's largest EV manufacturers, including Tesla, BYD, and CATL, have bet large on LMFP.
Incidentally, India has one of the largest reserves of Manganese. This move helps de-risk the Lithium-ion battery supply chain in India from external shocks and therefore, has implications for the country's energy security.
"Developing LMFP technology will enable LOHUM to accelerate the Energy Transition by making available higher energy densities, increased cost-effectiveness, higher safety, sustainability, and thermal adaptability of batteries to climate change. LMFP will play a pivotal role in supporting India's EV market and is a key stepping stone to India's Energy Independence," said Rajat Verma, Founder and CEO of LOHUM.