Lohum Subsidiary Vidyuta Secures ECMS Approval for 20 KTPA Cathode Manufacturing

Vidyuta, a subsidiary of recycling firm Lohum, has received government approval for a 20 KTPA (kilotonnes per annum) cathode active material manufacturing capacity under the Electronics Component Manufacturing Scheme (ECMS).

The project involves a total capital investment of ₹500 crore. Of this amount, up to ₹125 crore, or 25 per cent, is supported through a capex-linked incentive under the scheme to aid commercial scale-up. The company stated that Vidyuta is the first LCO (lithium cobalt oxide) cathode active material company to receive approval under the ECMS.

The ECMS is a flagship initiative launched in April last year by the Ministry of Electronics and Information Technology. Its primary objective is to build a self-sustainable domestic electronics component manufacturing ecosystem in India. Cathode active material (CAM) is a critical component of lithium-ion cells. With this approval, the cathode is brought into the scheme's support for India's cell materials ecosystem, alongside anode material and other battery materials.

Vidyuta's production line is designed for LCO cathode active materials in both polycrystalline and single-crystal forms. According to the company, this setup provides cell manufacturers with the flexibility to specify chemistry and morphology from a single supply partner. The project forms part of the Lohum group's integrated value chain. Critical minerals recovered from spent lithium-ion batteries—alongside lithium, cobalt, and nickel refined by Lohum—are used to produce cathode active material at Vidyuta for cell manufacturers in India.

Rajat Verma, Founder and CEO of Lohum, noted that the approval enables the domestic production of LCO cathode active material at a scale of 20 KTPA, offering cell manufacturers a local source for a high-value battery material. He added that while India's electronics manufacturing has scaled quickly, the materials inside the battery cell have largely remained imported, making lithium cobalt oxide cathode a practical place to change that trend.

Citing data from Niti Aayog, the company pointed out that positive active material accounts for nearly half the cost of a lithium-ion battery pack. Estimates indicate that India's advanced chemistry cell manufacturing will require approximately 1,93,000 tonnes of cathode active material annually to produce around 100 GWh of batteries by 2030.

Ankit Sharma, Co-founder and CEO at Vidyuta, stated that the cathode dictates much of a battery's value and performance. He noted that the ECMS approval allows Vidyuta to scale cathode active material production domestically using refined minerals from Lohum, bringing the country a step closer to establishing a local battery supply chain from refined metal to the final cell.

"The approval of Vidyuta's manufacturing capacity under the ECMS marks a notable step toward localizing the critical components of India's battery supply chain. By integrating refined minerals from recycling operations with domestic production, this ₹500 crore project addresses a key cost driver in lithium-ion battery packs. Scaling domestic cathode active material production will be essential as India's advanced chemistry cell manufacturing capacity expands toward its targets for the next decade." — Dr. Shishir Gupta, Founder & CEO, StartupLanes