India's largest lithium-ion battery recycling company, Lohum, is likely to increase its recycling capacity to a whopping 25-30GWh per year by 2027 from the current 5GWh, with new facilities set to launch in southern parts of India starting next year, the company founder told Autocar Professional.
"We are going to expand capacity by 70-80% each year for the next two-three years. Expanding capacity is the key factor. Our growth depends on how much capacity we establish, which in turn relies on securing a steady supply of raw materials. Ultimately, it's a balance between scaling up our facilities and strengthening our supply chain," Founder and CEO Rajat Verma said.
Founded in 2018, Lohum focuses recycling and recovering key materials like lithium, nickel, cobalt, and manganese from end-of-life batteries and production waste. Currently, the company has facilities in Greater Noida and Gujarat with a total recycling capacity of 5 GWh.
The climate-tech company operates facilities in Uttar Pradesh and Gujarat. In 2024, it partnered with US-based ReElement Technologies Corporation and American Metals LLC to establish a 15.5GWh facility in the United States which will be live by 2026. The company also has supply partners in Europe and a joint venture with the Ministry of Energy in UAE.
Fund Raising
Amid its ongoing expansion, Lohum is also likely to raise $200 million and hold an IPO by 2027. In the last six years, the recycler has raised $100 million, and invested 70% of it.
"We look to raise another couple of $100 million in the next couple of years from the market. We'll continue to raise money and invest it," Verma said.
The company has plans to achieve over Rs 1,000 crore in revenue in the current year, before increasing it multifold to nearly Rs 5,000 crore by 2028.
The company does serve the domestic market, but its primary market is outside India with players like Glencore and Samsung.
"We will be closing the books this year with a Rs 1,000 crore plus run rate and then we will continue to grow," Verma said. "We are growing at a rate of 70-75% year on year and will continue expanding at this pace," he mentioned further.
In 2022-23, Lohum achieved a revenue of Rs 308 crore, followed by Rs 530 crore in the financial year 2024.
Verma noted that India has introduced progressive laws that will drive the growth of recycling capacity in the country and at a broader level, India has taken the right steps.
At a more localized level, Verma said, it would be beneficial if state pollution control boards actively ensured that only players with the right technology and standards operate in the market while keeping bad actors out.
In order to bolster the domestic production of EV batteries and support the growth of India's electric vehicle market, the Union Budget for 2025-26 announced plans to exempt basic customs duty on 35 additional capital goods used in lithium-ion battery manufacturing, along with a duty exemption on the scrap of lithium-ion batteries and critical minerals like cobalt and copper.