Vedanta acquires Goa-based Nicomet

Vedanta acquires Goa-based Nicomet

Shares of Vedanta rallied nearly 4% Tuesday to Rs 335.30 apiece on NSE after the has acquired Nicomet, a leading nickel and cobalt producer based in Goa.
The acquisition has been made by Vedanta’s wholly owned subsidiary Malco Energy Ltd. through the IBC process.
With this acquisition, Vedanta has become India’s sole producer of nickel. The unit is defunct since 2019 and Vedanta is expected to make it operational by the end of this fiscal.
The move is a step in the company’s mission towards making India self-reliant in critical minerals, the company said. The acquisition is in line with Vedanta’s environmental, social and governance (ESG) mission and is a step towards supporting India’s carbon neutrality goals.

Nickel, a strategic mineral, is a vital input for manufacturing stainless steel and batteries for electric vehicles (EVs). Similarly, cobalt is a key element for lithium-ion batteries for EVs and energy storage systems, besides other use cases such as a superalloy for steelmaking. Both nickel and cobalt are considered as the minerals of the future, which will play a leading role in the transition towards renewable and cleaner energy.
Nicomet has emerged as a certified producer of high-quality battery-grade nickel sulphate crystals used for manufacturing EV batteries globally. India’s demand for nickel is pegged at 45 KTPA, which is entirely met through imports. Nicomet has a capacity to produce 7.5 KTPA nickel and cobalt. With an ambitious growth plan in place, Vedanta is poised to meet 50% of India’s nickel demand. For Vedanta, Nicomet is a major strategic acquisition and is expected to strengthen its portfolio of iron and steel businesses.

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