Baring Pvt Equity Partners leads a USD 7 million round in Lohum

New Delhi: Baring Pvt Equity Partners has become a key investor in Lohum, aninnovative lithium-ion battery pack manufacturer and battery recycling company.From its 2017 start in New Delhi, Lohum has developed advanced technology in manufacturing 1st & 2nd life lithium-ion battery packs for low-power mobility applications and recovering critical battery materials through extraction at the end-of-life.  Lohum is one of only a few companies globally with the in-house technology across pack manufacturing through material recycling.  Lohum’s high growth over the last year led to the launch of its second manufacturing unit in Greater Noida with the production capacity of 300MWh divided evenly between pack production and recycling. The company is achieving an annualized run rate greater than USD 8 million with the target of greater than USD 90 million within three years.  The capital raise will accelerate growth plans to achieve an integrated domestic capacity of 700MWh within a year, as well as move-up the first overseas recycling plant in the US.

Baring Pvt Equity Partners led the USD 7 million round based on Lohum’s superior technology and the large market opportunity in India and abroad.  Arul Mehra, Partner, Baring Pvt Equity Partners said “Lohum has a pioneering approach to lithium-ion battery manufacturing and recycling and is poised to benefit from the coming wave of electric vehicles and stationary storage. Their vertical integration into first life and second life batteries along with recycling makes them an ideal partner for original equipment manufacturers aiming for cost-effective and sustainable battery solutions. Making recycled battery chemicals and metals available to customers which lack access to them for geopolitical or geographical reasons will lead to democratization in cell manufacturing.  Lohum’s vision to create global leadership in li-ion battery recycling with a multinational team and global footprint is inspiring. Baring India is proud to support them in this endeavour and wish them the best. “

Lohum continues to increase its product portfolio across mobility and stationary storage applications.  Core markets have been the two and three-wheeler and the company sees tremendous growth in these applications, especially with the new growth in logistics and delivery.  The company already enjoys a large and diversified customer base across battery packs and recycling that includes domestic and global OEMs, as well as fleet operators.

Commenting on development Mr. Rajat Verma, Founder & CEO, Lohum said “It gives us great pleasure to have Baring Pvt Equity partners as a lead investor in Lohum as the firm shares the same level of passion and belief in the fast growing EV ecosystem in India and around the globe. The investment raised will ensure that Lohum expands its manufacturing capabilities and its product offerings multi-fold. In 2021 one of our key focus is to expand our dealer network across the country and also increase overseas operations. At Lohum our core vision is to create technology that makes battery power cheaper and last longer in every part of the globe.”

Lohum already has its footprint in the US in Washington D.C. and Los Angeles and is working with OEMs for battery pack and recycling solutions. The first recycling plant in the US is planned for 2022.  Mr. Justin Lemmon, Co-founder & Head of International Operations, said “We see a very unique opportunity because the entire world is shifting to battery power at the same time in two of the largest global industries – mobility and energy.  These industries will look vastly different in 10 years and we want our solutions to play a significant role in that transition.”

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