LICO Materials Powers Up: Plans to Triple Revenue Amid EV Boom

LICO Materials, a battery recycling company, aims to triple its revenue to Rs 100 crore by FY26 amid rising demand for EVs and energy storage. The decline in key mineral prices has impacted current year revenue. The company is expanding with a new Bengaluru facility and plans for a Delhi-NCR unit.

LICO Materials, a prominent player in the battery recycling sector, is set to significantly boost its revenue amid the burgeoning demand for electric vehicles (EVs) and energy storage in India. CEO Gaurav Dolwani revealed plans to triple revenue to over Rs 100 crore by FY26.

This fiscal year, LICO anticipates generating approximately Rs 30 crore, but CEO Dolwani suggests that in a favorable commodity market, they might exceed Rs 100 crore. However, falling prices for lithium, cobalt, and nickel have tempered their financial outlook for this year, despite meeting targeted production volumes.

LICO recently inaugurated a new recycling plant in Bengaluru, capable of processing 17,500 tonnes of input batteries annually. The company is investing Rs 250 crore in developing its own downstream chemical facility within two to three years, funded through a mix of equity and debt. A similar facility is planned for Delhi-NCR in two years, contingent on the Bengaluru plant reaching full capacity.

The EV industry in India is projected to grow by 250%, with energy storage capacity hitting 42GW by 2032. LICO's efforts in recycling used batteries are crucial for recovering vital minerals, supporting the battery circular economy. By 2027, LICO aims to recycle enough batteries to equate to 200,000 metric tonnes of electric cars annually.

Since its inception in October 2021, LICO has been dedicated to recycling and repurposing end-of-life lithium-ion batteries, contributing to a sustainable circular economy and the recovery of critical materials.

(With inputs from agencies.)