Epsilon Advanced Materials to invest $650M in a US EV battery facility

Know More

Epsilon Advanced Materials (EAM), an Indian battery materials company, plans to invest $650 million in establishing a 50,000 TPA synthetic graphite anode manufacturing facility in the USA. This facility will produce high-capacity anode materials for electric vehicle (EV) batteries, contributing to the US goal of converting 50% of vehicle sales to electric by 2030 and generating 1000 GWh of battery capacity.

The investment is marked towards establishing a synthetic graphite anode manufacturing facility, producing high-capacity anode materials for EV batteries through green technologies. The facility, which will be the largest Indian investment in the US EV battery industry, is expected to supply critical battery materials for over 1 million EVs.

EAM is currently evaluating multiple locations in the US for the facility, subject to regulatory approvals, environmental permits, and state and local incentive agreements. The company has already secured strategic supply agreements with local raw material suppliers and transport partners to create a supply chain network while minimizing carbon emissions and reducing transportation costs. The facility is projected to generate over $500 million in revenue by 2031 and create more than 1,500 direct and indirect job opportunities. It is expected to be commissioned by 2026.

The investment by EAM is aimed at strengthening the US-India trade relationship and contributing to cleaner and sustainable energy alternatives. The joint statement by US President Joe Biden and India’s Prime Minister Narendra Modi acknowledges EAM’s investment in the USA.

Mr Vikram Handa, the Founder and Managing Director of EAM, emphasizes the company’s commitment to clean energy solutions and localizing the battery manufacturing ecosystem. By leveraging India’s patented anode manufacturing technology, EAM aims to support automakers in accessing EV subsidies under the US Inflation Reduction Act and passing on the benefits to end-users. The U.S. government has set up an ambitious goal for electric vehicles (EV) with the vision to convert 50% of vehicle sales to be electric by 2030 and generate 1000 GWh of battery capacity. EAM’s contribution to the US EV roadmap aims to ensure a local supply chain for EV batteries and support the government’s mineral security mandate.

In compliance with The US Inflation Reduction Act, US automakers are seeking alternative countries for sourcing critical battery materials due to the disqualification of Chinese sourcing from the $7500 credit per EV. EAM’s investment aims to support energy transitions in the US and India, leveraging their strong trade partnership.

The increasing demand for critical minerals, including graphite, driven by the rapid growth of the EV market and renewable energy sources, highlights the need for investments in the sector. Graphite shortages are anticipated to rise, with a projected global supply deficit of 777,000 tons by 2030. According to the Benchmark Mineral Intelligence Report, around $12 billion of investment in graphite is required by 2035 to meet the growing demand.

Also Read: Epsilon Advanced Materials to invest INR 9,000cr in Karnataka over ten years for anode production.