Indian conglomerate Vedanta announced plans to ramp up its nickel and nickel sulphate production to capitalize on the increasing demand for electric vehicle (EV) battery materials in Northeast Asia. The company disclosed this development on September 12 in a statement to Reuters.
“Vedanta Nico plans to expand its capacity for nickel and nickel sulphate production going forward,” the company said, referring to its dedicated business unit for these materials, as quoted by Reuters.
However, the statement did not provide specific production or investment figures.
While Japan and South Korea have advanced EV markets, India’s remains in its early stages. Citing weaker domestic demand, Vedanta has urged the Indian government to negotiate changes to trade agreements with Japan and South Korea to eliminate their import duties on nickel sulphate, a key component in EV batteries.
Vedanta, part of London-based Vedanta Resources and led by billionaire Anil Agarwal, aims to leverage rising demand for nickel products in Northeast Asia. The company sees a strategic opportunity in exporting nickel sulphate to the region, as highlighted in its statement: “We also see a great opportunity for nickel sulphate (a high value integral product used in battery production) in the North East Asian region, which can play an important role in driving the growth of India’s exports.”
Nickel’s role in India’s growth
The move aligns with India’s broader ambition to increase its exports, with a goal of reaching $1 trillion by 2030, up from $437 billion in the 2023/24 fiscal year.
Nickel has been identified as a “critical” resource in India’s push towards cleaner technologies, particularly in transportation, as the country aims to reduce its carbon emissions. Prime Minister Narendra Modi’s government has launched several initiatives, including a $1.3 billion program to promote EV sales and local production of EVs and batteries.
Despite these efforts, EVs accounted for just 7% of the 23.8 million vehicles sold in India last year.
(With Inputs from Reuters)