Indian Firm Epsilon To Setup EV Battery Component Manufacturing Unit In US

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Indian battery materials firm Epsilon Advanced Materials (EAM) has now decided to set up its electric vehicle (EV) component material manufacturing unit in the United States (US). It comes days after India joined the elite US-led Minerals Security Partnership (MSP) club. The firm also planned to invest around USD 650 million in the Western country to undertake the expansion project. 

The company plans to start manufacturing a graphite anode facility that could be used in electric vehicle (EV) batteries. The manufacturing unit is likely to be started in the next three years. The firm has eyed to produce around 50,000 tonnes of capacity. The firm has been exploring different options related to its location and trying to foray into agreements with local raw material suppliers and other key supply chain stakeholders. 

“The company will establish a 50,000 TPA synthetic graphite anode manufacturing facility in the US to supply high-capacity anode materials produced through green technologies. The proposed facility in the US will provide critical battery materials to power more than 1 million Electric Vehicles. This synthetic graphite anode processing facility is the largest Indian investment in the US electric vehicle battery industry. This investment is directed towards building a strong US-India trade relationship and contributing to creating cleaner and sustainable energy alternatives,” the company said. 

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The move will likely boost the production of batteries that could be used in EVs and other areas. It is likely to add up to the clean technology portfolio of the firm. EAM will produce high-capacity synthetic anode materials through this facility, customized for specific cell chemistries. It is expected to generate more than US$ 500 million in revenue at full capacity by 2031. EAM said it would create more than 1500 direct and indirect employment opportunities at this facility. The facility is expected to be commissioned by 2026.

The Mumbai-based firm was established in 2018 to make its entry into the Lithium-ion battery space. Its portfolio claims that it works towards developing quality carbon products for anode components of Lithium-ion batteries. They have a global footprint across Europe, North America, and South-East Asia.

“The battery value chain is a critical enabler to electric mobility adoption, and we are channelizing our efforts to localize the battery manufacturing ecosystem. It will help automakers leverage the EV subsidies under the US Inflation Reduction Act and pass on the benefits to the end-user. I’m excited that we are bringing in the India patented anode manufacturing technology to the US and leveraging it to contribute to the vision that the US has for the EV battery ecosystem,” Vikram Handa, MD of the firm, said. 

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