January 13th, 2025
LICO Materials, a leader in battery recycling, is on track to achieve ₹100 crore in revenue by FY26. Founded in 2021, the company plays a crucial role in India’s green transition by creating sustainable solutions for the lithium-ion battery supply chain. With the electric vehicle (EV) market growing rapidly and energy storage demand rising, LICO’s strategic facility expansions and investment plans position it as a key enabler of India’s sustainable future.
Driving Revenue Growth
Ambitious Targets
LICO expects its revenue to grow from ₹30 crore in FY25 to over ₹100 crore by FY26, fueled by the increasing adoption of EVs and energy storage systems.
Overcoming Challenges
Although a drop in lithium, cobalt, and nickel prices affected revenue in the current fiscal year, LICO is confident in a strong rebound. The rising demand for recycled materials and sustainable energy solutions is expected to drive this recovery.
Facility Expansion: Scaling Operations
LICO is expanding its operations to meet the growing demand for battery recycling and repurposing.
1. Bengaluru Recycling Facility
- Capacity: The recently launched facility processes 17,500 tonnes of battery input annually.
- Significance: It supports the recycling of end-of-life batteries and cell production scrap, helping reduce waste and reclaim valuable materials.
2. Delhi-NCR Facility
- Timeline: Scheduled to launch within two years, after the Bengaluru plant reaches full capacity.
- Scalability: Designed to match or exceed the Bengaluru facility’s processing capacity, depending on raw material availability.
3. Downstream Chemical Facility
- Investment: A planned investment of ₹250 crore over the next 2–3 years will fund this unit.
- Purpose: This facility will focus on processing recycled materials into high-value chemicals for battery production.
- Funding: The project will be supported by a mix of equity and debt.
Impact on the Market and Environment
Accelerating EV Growth
India’s EV market is projected to grow by 250% by 2032, with energy storage capacity expected to reach 42GW in the same period. LICO’s recycling capabilities will play a critical role in supporting this growth.
Environmental Benefits
By 2027, LICO aims to:
- Recycle 200,000 metric tonnes of EV batteries annually.
- Conserve 100 million liters of water.
- Prevent CO2 emissions equivalent to the absorption capacity of 37 million trees.
These contributions will significantly reduce the environmental impact of battery production and waste disposal.
Building a Circular Economy
LICO Materials is committed to advancing a battery circular economy by recovering essential minerals such as lithium, cobalt, and nickel. This approach reduces dependence on imports, strengthens India’s domestic supply chain, and minimizes the environmental footprint of EV batteries.
Why LICO Matters
Revenue Potential: By targeting ₹100 crore in revenue, LICO is setting a new benchmark for India’s battery recycling industry.
Strategic Growth: With facility expansions in Bengaluru and Delhi-NCR, LICO is poised to meet rising market demand.
Sustainability Leadership: The company’s focus on recycling and repurposing aligns with India’s goals for green mobility.