LOHUM, a company focused on critical minerals, aims to produce approximately 30,000 tons of lithium carbonate annually from recently acquired assets in Zimbabwe over the next two to three years. The company's goal is to establish an integrated supply chain covering mining, processing, and the production of advanced materials.
Founder and CEO Rajat Verma told Business Standard that the company has already commenced mining operations in Zimbabwe. He specified that rights have been secured for 10 blocks of spodumene-containing lithium ore, covering an area of about 1,100 hectares.
Verma noted that operations have begun and the first batch of ore is expected in about a week. He added that drilling and blasting have started, and the extraction of the first ore is scheduled for the near future.
On Wednesday, the company announced the first shipment of ore from its Zimbabwean assets, marking the start of its lithium operations in the country. LOHUM stated that this makes it the first Indian company to begin global lithium operations.
According to LOHUM's plan, the mining and primary processing of the material will take place in Zimbabwe, while subsequent refinement into lithium carbonate will occur in India. Verma reported that the company is building a new lithium plant in India to process the material from Zimbabwe, although the location of this facility has not yet been disclosed.
He explained that the total capacity they are creating—from extraction volume to conversion into raw lithium sulfate and ultimately into pure lithium carbonate—is about 30,000 tons per year.
The company also intends to develop the value chain further downstream. Verma mentioned that LOHUM is establishing a cathode active material manufacturing enterprise, which will allow the company to become its own consumer of lithium carbonate before the material reaches battery manufacturers.
LOHUM already has clients in India and abroad purchasing its lithium carbonate and is negotiating with domestic companies. He emphasized that increasing the capacity for cathode active material production will be crucial for stimulating additional domestic demand for lithium carbonate.
The ten acquired blocks could be the beginning of a significantly larger resource potential in Zimbabwe. Verma mentioned that the company has preferential rights to an additional 90 blocks, giving it the right of first refusal before these blocks are offered to other buyers.
LOHUM reported that the initial 10 blocks should support the production of approximately 300,000 tons of lithium carbonate equivalent over the entire lifespan of the assets. At current lithium carbonate prices, the company values the reserves at around $7 billion USD.
The investments in Zimbabwe reflect LOHUM's broader approach to acquiring critical mineral assets overseas. According to Verma, the company believes that acquiring foreign assets requires simultaneously addressing three objectives: buying the asset at the right price, rapidly commissioning it, and creating local added value.
He warned that development delays can be significant, stating, 'we are already 15 years behind, and if you acquire an asset that requires another 15 years to develop, you will be 30 years behind.' Furthermore, he noted that the presence of Chinese companies in many resource-rich countries intensifies competition, which can drive up the price of available resources.
Verma summarized that LOHUM evaluates overseas opportunities based on three parameters: 'cheap acquisition, fast production, and local added value.' The company focuses particularly on assets capable of starting production within one or two years, rather than projects requiring decades of development. He explained that this is due to the realization of the need not to fall behind China in the race.
LOHUM's operation in Zimbabwe is the company's first mining asset outside of India. Although the company has partnerships with mines in various countries where it processes concentrates, Zimbabwe is the first instance where it has acquired the mining assets themselves. The company is also continuing to explore opportunities related to other critical minerals, specifically nickel and nickel-copper ore.