Epsilon acquires German LFP Cathode Tech Center| Plans to establish manufacturing plant in India

Epsilon Advanced Materials (EAM) has completed the acquisition of a lithium-ion phosphate (LFP) cathode active material technology center located in Moosburg, Germany. Following this acquisition, EAM functions as a company supplying both cathode and anode materials for lithium-ion batteries on a global scale.

With this purchase, EAM’s plans to establish a large-scale LFP cathode manufacturing plant in India, making it the first country in Asia, outside of China, to undertake such production. EAM intends to begin construction on its facility in India in 2024, with plans to build a large-scale customer qualification plant by 2025 and a projected scaling up to 100,000 tons by 2030.

“This acquisition reaffirms our commitment to delivering cutting-edge solutions to the evolving EV battery market,” said Vikram Handa, Managing Director of EAM. “The advanced technology center in Moosburg strategically positions us to lead the industry in cathode material manufacturing.”

The Moosburg facility reduces EAM’s technology development and scale-up timeframe. The center produces LFP and lithium manganese iron phosphate (LMFP) cathodes in small laboratory-scale batches, scaling up to pilot-scale material. It includes a pilot customer qualification plant for validating new materials and employs a Hydrothermal process for metal processing, contributing to a battery-metals supply chain.

As per the official statement, the acquisition of the cathode active material technology center from Johnson Matthey reinforces EAM’s global presence as an EV battery materials provider, potentially impacting the electric mobility landscape by decreasing reliance on China for battery production, where around 70% of cathode materials, including 100% of LFP cathode, are currently manufactured.

“We are proud to announce that EAM is now ready to go to market with a proven high-performance cathode active material, marking a significant leap forward in our capabilities,” said Sunit Kapur, CEO of EAM. “Integrating the cathode expertise from the Moosburg technology center with our anode business uniquely positions us to deliver comprehensive solutions to customers, delivering anode and cathode to empower them to optimize the performance of their batteries.”

Battery manufacturers are increasingly adopting LFP cathode due to its extended lifespan, improved discharge and charge efficiency, superior performance in higher temperatures, and cost-effectiveness compared to other cathode materials like nickel and cobalt. Additionally, LFP cathode is maintenance-free, safe and lightweight.

Epsilon Advanced Materials had previously disclosed INR 9,000 Crore investment for establishing an anode battery materials manufacturing facility in Bellari, Karnataka, India. Additionally, EAM has plans for a USD 650 million graphite anode material manufacturing facility in Brunswick County, North Carolina, U.S., and is allocating Euro 600 million to develop a graphite processing facility in Vaasa, Finland.

Also read: Epsilon’s anode manufacturing plans and recommendations to support component manufacturing in India