How Lohum pioneers India's critical mineral revolution
Lohum Cleantech Pvt Ltd is a transformed entity today. The Noida-based company, which began its journey in 2018 as a start-up to recycle lithium-ion batteries, has completely repositioned itself in the market. Today, the Rs850-crore company – counting PE players like Baring Private Equity, Singularity, and Cactus Venture Partners – has transitioned into a leading producer and processor of sustainable critical minerals in India. Lohum currently refines more than 90 per cent of all lithium in India, making it one of the largest lithium refiners in the world outside of China.
Backed by a workforce of 800 people, the company, boasting a clientele of over 200 customers, can process over 25,000 MTPA of critical minerals annually through its patented NEETM recycling and extraction technology. In fact, Lohum is the first company in India to obtain the R4 Licence from the government, allowing it to import lithium-ion battery scrap for recycling purposes.
The company, which until two years ago was primarily known for its lithium-ion battery recycling activities, has since developed capabilities to recycle and refine a range of critical minerals and metals such as Li (lithium), Co (cobalt), Ni (nickel), Al (aluminium), Cu (copper), Zn (zinc), and Mn (manganese), as well as graphite. These minerals, apart from batteries, find critical applications across multiple industries. Lohum, which is also the only integrated battery recycling, repurposing, and material refining company in India, is looking to further expand its portfolio by adding more critical minerals.
Critical minerals like Li, Co, and Rare Earth Elements (REE) are fundamental to technologies such as electric vehicles, wind turbines, and solar panels, making them indispensable for the global shift towards sustainable energy. The transition to cleaner energy has put the spotlight on critical minerals and rare earth elements. These are essential for producing the carbon-free and low-carbon technologies that will enable the world to move from fossil fuels to more sustainable alternatives.
Critical minerals are present in everything from battery storage and electric vehicles to wind turbines and solar panels, to name a few. The International Energy Agency forecasts that demand for critical minerals will need to triple by 2030 and quadruple by 2040 if we are to achieve net-zero emissions.
India has launched the National Critical Mineral Mission to ensure a secure and sustainable supply of critical minerals, crucial for clean energy technologies and economic growth. The mission focuses on domestic production, recycling, and overseas acquisition of these minerals, with a strong emphasis on technology development, a skilled workforce, and international collaboration. Launched this year, the mission aims to establish a robust framework for self-reliance in the critical minerals sector.
The government has also released a list of 30 critical minerals for India. These minerals include, among others, beryllium, bismuth, cobalt, copper, gallium, graphite, hafnium, lithium, molybdenum, nickel, PGE, phosphorus, REE, rhenium, silicon, tin, titanium, tungsten, selenium, and cadmium.
In its new avatar, Lohum, which is in the process of rebranding to express its new identity in the market, is not only using secondary feedstock sources (battery recycling and industrial wastes) but has also developed the ability to refine primary resources (ore concentrates and intermediates) for producing these critical minerals.
“Over the last few years, we aggressively carried out our transition, and today we have emerged as a leading producer of sustainable critical minerals. Our mission is to become one of the largest producers of these minerals in the world. In fact, we look to actively participate in the government’s National Critical Mineral Mission, which aims to reduce India’s dependence on imports of critical minerals and ensure self-reliance for high-tech industries, in alignment with the Atmanirbhar Bharat vision,” says Rajat Verma, Founder & CEO, Lohum Cleantech.
Expansion spree
Going forward, Lohum is looking to significantly expand its operations. The company, which is the largest lithium refiner in India, is planning to expand its portfolio in a major way. On the one hand, it will add more critical minerals to its existing portfolio; on the other, it will increase its existing capacities, including value-added downstream products like Cathode Active Materials (CAMs), which are directly used in lithium-ion battery manufacturing. The company is planning to scale up its CAM production capacity from the current 150 MWh per annum to 10 GWh per annum over the next few years. This will make Lohum the largest direct consumer of lithium in India by 2030. It has already expanded its lithium refining capabilities with a 1,000 MTPA battery-grade lithium facility.
Having invested around Rs400 crore in the last couple of years, Lohum is currently undertaking a major capex programme of over $250 million to expand its operations nearly fivefold over the next 4-5 years. The company is aiming for a topline of around Rs5,000 crore on implementation of this planned capex, which is expected to be funded by a combination of debt, equity, and internal accruals.
Lohum has so far raised around $90 million in Series A and Series B funding from Baring Private Equity, Singularity, Cactus Venture Partners, Stride Ventures, and VenturEast. The company was recently valued at $400 million. Having diluted around 40 per cent of its equity, Lohum is planning an IPO sometime in 2027.
As part of its expansion, the company is preparing to venture into the recycling and refining of Platinum Group Metals (PGMs). It will set up a state-of-the-art greenfield facility in Hyderabad within the next six months, while a pilot plant for the same has already been operational for some time. PGMs refer to six metallic elements: platinum, palladium, rhodium, ruthenium, iridium, and osmium. These noble metals are known for their high melting points, resistance to corrosion, and unique catalytic properties.
It is believed that the company is also considering the recycling and refining of Rare Earth Elements (REE) through the establishment of a modern greenfield facility in Gujarat. A pilot for this project is also underway. Sources say that Lohum is also moving downstream into the production of rare earth magnets, which are primarily imported from China. The facility is expected to be commissioned in Gujarat later this year.
The global supply of rare earth magnets has been severely impacted, as China has recently imposed restrictions on the export of rare earth elements and related magnets. China mines 61 per cent and refines 91 per cent of the global supply. Rare earth magnets are the strongest permanent magnets and are crucial for a variety of electronics. In the automotive sector, they are needed even for ICE vehicles, where they feature in components like power steering and windscreen wiper motors. For EVs, however, they are indispensable, being a core component of Permanent Magnet Synchronous Motors, which deliver high torque.
To support all these initiatives, Lohum – a leading producer of sustainable energy transition materials – is setting up a modern R&D centre in Greater Noida, where most of its facilities are located. The centralised R&D unit, employing 100 people, will be inaugurated soon. The company holds over 50 patent claims related to lithium and more than 100 patent claims across various technologies for the reuse, recycling, and refining of critical minerals.
While India remains its core market, Lohum is also increasing its footprint overseas. It has signed a joint venture with the UAE’s Ministry of Energy & Infrastructure to establish that country’s first lithium-ion battery recycling facility. The US and EU markets are also under review, though plans are not yet finalised.
“We are expanding our operations in a massive manner. While doing so, our focus will be on forward integrating into downstream products that can add immense value to our overall supply chain and create much greater value for our stakeholders,” says the CEO.
Leading from the front, Verma has played a pivotal role in transforming Lohum into what it is today. His innovative approach has garnered the company significant recognition. Lohum has been honoured with the FICCI India Circular Economy Award (ICEA) in 2024, the National Energy Efficiency Innovation Award (NEEIA) in 2023, and was named ‘The Most Innovative Company of the Year 2022’ by the Confederation of Indian Industry (CII), among other notable awards.
Before founding Lohum, Verma spent 25 years in the technology industry, specialising in electronic waste management. His expertise in developing solutions for e-waste value chains extends to markets in India, the US and the GCC. Moreover, he is an active early-stage technology investor. A prolific academic, Verma holds engineering degrees from IIT Kanpur and Stanford University, and an MBA from Harvard Business School.
Led by a capable leader, Lohum has made significant strides in a very short span of time. The company currently has eight facilities – seven in Greater Noida, Uttar Pradesh (including India’s largest lithium and cobalt refineries) and one in Panoli, Gujarat. Across these facilities, the company can process a total of 25,000 tonnes of critical minerals. It has integrated metal refining and battery repurposing facilities with 5 GWh of overall capacity, which includes 1,000 MTPA of lithium refining, 1,200 MTPA of cobalt refining, and 1,000 MTPA of nickel refining. Aluminium, copper and iron refining capacity stands at 2,500 MTPA. Additionally, there is 150 MWh per annum of CAM capacity, 300 MWh per annum of battery repurposing capacity, and 300 MWh per annum of battery dismantling capacity.
Known for its innovative capabilities, Lohum’s patented NEETM technology is the company’s flagship innovation. NEETM lithium-ion battery material recycling and extraction technology yields top-quality materials and produces zero waste. It is a multi-stage hydrometallurgical energy transition material recycling and extraction process that regenerates 95 per cent of all battery raw materials from used batteries, with purity rates averaging 99.5 per cent. The technology is chemistry-agnostic, meaning NEETM can recycle batteries of every cell chemistry.
The Lohum DETX (Delhi Energy Transition Exchange) battery price index provides accurate and weighted future pricing information for battery materials and battery buyback. This technology platform stabilises the ecosystem and insulates stakeholders against price volatility and supply shocks.
Partnerships
Lohum also assists OEMs in meeting their Extended Producer Responsibility (EPR) obligations under the Battery Waste Management Rules (BWMR) 2022. These rules, which came into effect on 22 August 2022, place the responsibility for managing end-of-life batteries on the producers, including manufacturers and importers. The company helps OEMs fulfil their EPR obligations by managing the collection, recycling, and refurbishment of waste batteries, ensuring compliance with the regulations.
Lohum has partnered with Log9, a leading Indian deep technology company that specialises in advanced EV battery technology and is the only manufacturer of lithium-ion cells in India. The partnership aims to establish a stable and innovative framework for the responsible disposal of Log9’s LTO batteries, which are long-life batteries capable of more than 15,000 cycles in EV use cases. As an EPR partner, Lohum will enable Log9 to seamlessly meet its material recovery targets when its LTO batteries reach the end of their life in their first application.
The company has more than 70 partners, including names such as Mercedes-Benz, Tata, MG, TVS, Jaguar, Hero, Mahindra, Sony, and Panasonic. It is Mercedes-Benz Energy’s first Asian partner for lithium-ion battery recycling and repurposing, scheduled at 50 MWh per annum. IIT Kanpur has partnered with Lohum for R&D collaboration in sustainability and other core areas.
With all these developments in place, Lohum – already a transformed entity – is fully geared up to commence its next growth phase. The company plans to expand its operations fivefold in the next 4-5 years. In a short span of time, backed by its patented technologies, Lohum has emerged as a leading producer of sustainable energy transition materials. From being primarily known for its lithium-ion battery recycling activity, it has developed capabilities to recycle and refine a range of critical minerals and metals.
Lohum currently refines more than 90 per cent of all lithium in India, making it one of the largest lithium refiners in the world outside of China. Today, the company has developed versatility in processing a wide range of input materials. It is not only using secondary feedstock sources (battery scraps and industrial wastes), but has also developed the ability to refine primary resources (ore concentrates and intermediaries) for producing these critical minerals.