Lohum Cleantech, which is a New Delhi-based startup that manufactures and recycles electric vehicle batteries, has raised USD7 million in a new round of funding led by Baring Private Equity Partners (BPEP).
Lohum Cleantech was founded in 2017 by Rajat Verma, Justin Lemmon, and Gazanfar Safvi. The company manufactures lithium-ion (Li-ion) battery packs and recycles battery materials (cobalt, lithium, nickel, and so on). The company claims that sales of EV batteries to solar plants and electric two and three-wheeler companies account for 80% of its revenue, with 10% coming from energy storage systems (ESS) and 10% from its recycling business.
With this funding round, Lohum plans to increase its manufacturing and recycling capacity for EV batteries up to 700 Mwh from its current capacity of 300 Mwh (150 Mwh for manufacturing and 150 Mwh for recycling plant). The company which has a plant in Greater Noida also plans to expand its operations in the US in the coming months.
Lohum CEO Rajat Verma said to The Economic Times that its 150 Mwh manufacturing plant has the capacity to produce battery packs for 75K electric two-wheelers in the country. The company plans to raise an additional USD20 million (INR 150 crore) in funding over the next year. With the rise in electric vehicle (EV) sales across the country, the company expects to grow its revenue by tenfold in the next three years, reaching USD65 million (INR 500 crore).