Lohum is targeting 30,000 tonne (t) lithium carbonate output from assets in Zimbabwe as it seeks to build an integrated supply chain spanning mining, processing and refining. The company plans to carry out mining and initial processing in Zimbabwe while converting the material into lithium carbonate in India, and it is setting up a new refinery whose location has not yet been finalised.

The firm intends to extend the chain further downstream by establishing a cathode active material facility, which could make it a customer for its own lithium carbonate ahead of sales to cell manufacturers, according to Lohum's chief executive. The company already supplies customers in India and overseas and is in discussions with other domestic firms.

Lohum acquired 10 blocks and has preferred rights over an additional 90 blocks, giving it a right of first refusal before those blocks are offered to other buyers. The initial 10 blocks are expected to support production of around 300,000 t over the life of the assets, and at prevailing lithium carbonate prices the deposits are estimated to have an in-situ value of about $7 bn.

The Zimbabwe investment reflects Lohum's broader strategy of acquiring critical mineral assets overseas and of solving three problems simultaneously: acquiring the asset at the right price, bringing it into production quickly and creating value locally, the chief executive said. The company is particularly focused on assets able to generate throughput within one to two years rather than projects that require a decade or more to develop.

The firm noted that delays compound the competitive gap with Chinese companies, which may already have operations in target countries and can push up acquisition prices. Lohum therefore evaluates opportunities on the basis of cheap acquisition, quick production and local value addition in order to deliver results within a short time frame.