Vedanta Becomes Only Nickel Producer In India With Acquisition Of Goa-Based Nicomet
Anil Agarwal-led Vedanta Limited on Monday announced acquiring Goa-based Nicomet, a company that provides cobalt, nickel, and sodium sulphate solutions.
“We are excited about Vedanta’s foray into nickel and cobalt production which will play a critical role in supporting Govt’s mission for an Atma Nirbhar Bharat. Nickel and Cobalt are a metal of great strategic importance, especially for our transition towards clean energy and electric mobility. Currently, India imports 100 percent of its nickel requirements, and our focus will be to boost domestic production that would fuel India’s transition to a net-zero economy," said Anil Agarwal, chairman of Vedanta Limited in a statement.
Nicomet can produce 7.5 tons of nickel and cobalt annually. Vedanta claimed it is well-positioned to fulfil 50 percent of the country's total nickel demand, thanks to an aggressive expansion strategy.
With this acquisition, Vedanta Limited secured the position of the only nickel producer in the country. The company did not reveal the financial aspect of the acquisition. “Since the asset acquired was under Insolvency and Bankruptcy Code (IBC), it does not require CCI (Competition Commission of India) approval,” said a spokesperson at Vedanta Limited.
Vedanta strategic partnership with Nicomet will strengthen its iron and steel business portfolio. Both Cobalt and Nickel are considered essential raw materials that are used in manufacturing batteries for electric vehicles (EVs).
“The plant has not been operational since 2018, so there is no headcount at the unit at present. We (Vedanta) plan to restart this unit by March 2022,” said the Vedanta spokesperson.
The Nicomet acquisition aligns with Vedanta’s ESG mission combined with India’s carbon neutrality goals, said Vedanta.