Vedanta to Expand Nickel and Nickel Sulphate Production to Tap Growing EV Demand in Northeast Asia
Indian conglomerate Vedanta announced plans to increase its production of nickel and nickel sulphate, capitalizing on the rising demand for electric vehicle (EV) battery materials in Northeast Asia. In an emailed statement, the company said that its subsidiary, Vedanta Nico, aims to expand capacity for these key materials, though it did not provide specific production figures or investment details.
While India’s EV market remains in its early stages compared to Japan and South Korea, Vedanta sees significant export opportunities for nickel sulphate, a crucial component in battery production. The company has urged the Indian government to press for changes in trade agreements with Japan and South Korea to eliminate import duties on nickel sulphate, making Indian exports more competitive in those markets.
Vedanta, part of the London-based Vedanta Resources and led by billionaire Anil Agarwal, is positioning itself to meet the growing demand for EV battery materials in Northeast Asia, particularly in Japan and South Korea, which have more mature electric vehicle industries. "We see a great opportunity for nickel sulphate in the North East Asian region, which can play an important role in driving the growth of India's exports," the company stated.
The expansion aligns with India's broader goal to increase its total goods exports to $1 trillion by 2030, up from $437 billion in the 2023/24 fiscal year. Nickel has been designated as a critical material for India’s clean energy transition, particularly in sectors like transportation.
India's government has introduced several incentives to boost domestic EV production, including a $1.3 billion program aimed at increasing EV sales, which currently represent only 7% of the 23.8 million vehicles sold in the country last year.
