Epsilon Advanced Materials to invest INR 9,000 crore in Karnataka over ten years for anode production

Epsilon Advanced Materials, a wholly owned subsidiary of Epsilon Carbon Private Limited, signed a Memorandum of Understanding (MoU) with the Government of Karnataka to invest INR 9,000 crore (USD $1.1 billion) approx. to establish graphite anode plants in the state over the span of 10 years.

The anode is the negative electrode in lithium-ion batteries, paired with cathode materials in a lithium-ion cell. The charging speed of a battery is largely governed by the anode material.

As part of the agreement, Epsilon Advanced Materials would set up an anode material production plant, which would employ 75% local people. The Government of Karnataka would facilitate Epsilon Advanced Materials in obtaining necessary registrations, approvals, clearances, and incentives.

The anode material production plant collaboration will help build a sustainable EV ecosystem in the state, which houses 45 plus EV start-ups, 400 R&D centres and the upcoming EV cluster. Epsilon Advanced Materials will build an R&D facility to develop graphite anodes.

More than 90% of graphite anodes are manufactured in China today, and Epsilon Advanced Materials aims to support India in this Energy transition journey with this investment in Karnataka.

On signing the MoU with the Government of Karnataka, Mr Vikram Handa, Managing Director, Epsilon Advanced Materials, said, “We are dedicated to investing in sustainable projects prioritizing clean energy like electric vehicles. By utilizing raw materials and indigenous technologies to manufacture EV battery components, we aspire to support the sustainable goal of the Government of India to achieve 7 million sales of hybrid and electric vehicles every year. We are delighted to be partnering with the Government of Karnataka on this front and look forward to building a world-class facility to support Indian and Global customers with high-performance battery materials.”

Recently, Epsilon also signed an MoU with the Finnish Mineral Group on an anode material project. Finnish Mineral Group is a Finland-based company with the mission to responsibly maximise the value of Finnish minerals. The first milestone of the project will be to launch the Environment Impact Assessment program concerning an anode material production plant.

Also read: Epsilon ties up with Finnish company Grafintec.