Lohum eyes $100 mn funding to grab a slice of global EV battery pie

Lohum plans to grow manufacturing operations successful India and abroad, leveraging the surge successful electrical conveyance adoption. It besides expects to implicit the backing round, capitalizing connected increasing capitalist involvement successful the sector.

In March, the institution had raised $54 cardinal successful a Series B circular led by Singularity Growth astatine a valuation of $419 million. 

Lohum has appointed concern slope Avendus Capital to assistance it navigate its fundraising efforts.

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“The ceremonial fundraising process is yet to beryllium launched. It is apt to instrumentality 5-6 months to rise the caller round," 1 of the 2 radical cited supra said.

“The institution is looking to rise caller superior arsenic it seeks to grow to North America, the Middle East and Europe," the 2nd idiosyncratic said. “It closed FY24 with implicit $500 crore successful topline, up from ₹300 crore successful FY23. Considering the maturation and aboriginal potential, determination is sizeable inbound capitalist interest."

Emailed queries to a institution spokesperson, arsenic good arsenic Avendus Capital, did not elicit immoderate effect till property time.

Founded successful 2017 by Rajat Verma, Lohum has secured astir $63 cardinal successful equity funding, and counts Baring Private Equity, Cactus Venture Partners, Venture East and Stride Ventures arsenic its investors.

According to quality reports, it has invested implicit ₹200 crore for mounting up a 1 GW recycling unit, and repurposes 300 MW of electrical conveyance (EV) batteries.

The institution offers an end-to-end ecosystem, comprising artillery recycling, repurposing, refining modulation materials, and integrated artillery lifecycle management.

On an average, an EV artillery lasts up to 7 years, oregon 80,000-100,000 km. Lohum specializes successful repurposing and recycling batteries from EVs and different sources. It besides produces battery-grade material, specified arsenic lithium salts, cobalt, and nickel, catering to the artillery manufacturing proviso chain.

In March, the institution had announced its plans to acceptable up ample integrated facilities successful Tamil Nadu, the UAE, the US, and Europe. Currently, it operates 2 plants, successful Delhi-NCR and Gujarat.

Lohum's competitors successful the manufacture see Denchi Group, Sunwoda Electronic, Nth Cycle and Li Industries.

Battery demand

According to a June 2023 study by Avendus Capital connected the circular economy, batteries are a captious constituent for EVs, constituting 30-50% of the cost. 

Demand for Li-ion batteries has surged significantly, pursuing the exponential maturation successful the EV market, driven by parity successful full outgo of ownership (TCO), regulatory push, and availability of superior products, it added.

Moreover, li-ion batteries are witnessing important request for vigor retention and user electronics owed to their precocious vigor density. According to Avendus, Li-ion artillery request successful India whitethorn transcend 235 GWh by 2030.

The artillery recycling and reuse marketplace is expected to turn 20-fold, reaching $2 cardinal by FY30, fuelled by expanding EV penetration and the request to conserve and retrieve uncommon materials specified arsenic lithium, nickel, and cobalt, the study added.

Also Read: Made-in-India Teslas, powered by electronics from Tata

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Published: 25 Apr 2024, 05:49 PM IST