Lohum Cleantech has signed a deal to supply 10,000 tonnes of specialty chemicals for the battery supply chain to company Glencore over the next five years, worth US$200-million.
According to Rajat Verma, founder and CEO of the India-based battery recycling company, Lohum will supply the specialty chemicals to Switzerland-based Glencore, including cathodes, sulphates, carbonates and oxides of various metals extracted from spent lithium-ion batteries and others.
Verma added that there is high value in the battery recycling chain and that Lohum is trying to deliver with a lower carbon footprint. At present, inputs from the consumer electronics sector averages 25,000 tones a year and drives India’s battery recycling market. Lohum, which started as a research company, now sees an average run rate of $80 million at the end of FY2023 from dismantling, recycling, repurposing batteries.
A company release said that Lohum and Glencore share a vision to further the energy transition and recognise the need to sustainably address the growing commodities demand for Li-ion batteries. Glencore co-head of Marketing Zinc and Copper, Jyothish Goerge said that the company’s focus on a greener future supports its target to reach net-zero carbon emissions by 2050. Part of the approach is to seamlessly combine primary as well as recycled feed streams to provide the critical metals needed for the transition to a low carbon future.
The global partnership will allow both companies to deepen their recycling expertise and support the advancement of a circular economy by supplying raw materials back into the battery supply chain.
Meanwhile, an IndustriALL trade union network meeting on September 8 in Johannesburg urged Glencore to be consistent in implementing global policies that protected workers and human rights, community interests, and the environment. The IndustriALL Glencore network met to discuss the battery supply chain and just transition, and scrutinized Glencore’s policies on human rights, responsible sourcing, and the environment. The meeting recommended a gender responsive approach to just transition.
The agreement between Lohum and Glencore is set to come into effect in 2023.
