Mumbai: Vedanta resources, controlled by Tycoon Anil Agarwal metals, have bought nickel & cobalt producers that go bankrupt nicomet and, in the process, become the only nickel maker in this country.
Purchases also make Vedanta leading cobalt manufacturers in India.
Nickel & Cobalt are future minerals because they are used in making lithium-ion batteries for electric vehicles, for energy storage systems and in other use such as steel making.
Nicomet, with an annual capacity to produce 7.5 kilo tons at its cave factory, has been non-operational over the past few years.
Corporate creditors take control of the Nicomet with bankruptcy code and initiate asset sales.
Vedanta, which directs the purchase through its subsidiary, does not reveal the price of acquisition.
Purchases come when the Nickel market tightens with a surge in battery demand and the increase in global stainless steel production in recent years, the trends that are expected to continue by 2022.
At present, India imports 100% nickel.
Requirements, which are around 45 kilos tons per year.
With an ambitious growth plan, Vedanta is ready to meet 50% of the total nickel demand for the country, the company said in a statement.
“Nickel and cobalt are very important metals strategically, especially for transition (India) we headed to clean energy and electricity mobility,” said Chairman of Vedanta Agarwal.
“Our focus is to increase domestic production that will encourage Indian transition to zero zero economy.”
Vedanta buys nickel bankrupt, cobalt co nicomet
