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Epsilon Group has signed a memorandum of understanding (MoU) with the Karnataka government to invest ₹15,350 crore (£1.4 billion) in manufacturing facilities for electric vehicle (EV) battery materials and testing. The investment, spanning a decade, includes ₹9,000 crore for a graphite anode plant, ₹6,000 crore for a lithium iron phosphate cathode facility, and ₹350 crore for research and development.
The project is expected to generate over 2,000 direct jobs in Karnataka and aims to reduce India’s reliance on imported battery materials. The facilities will cater to domestic battery manufacturers, with Epsilon Group stating that it can achieve 100% domestic value addition for anode materials and 60% for cathode materials.
Vikram Handa, Managing Director of Epsilon Group, emphasised that the investment aligns with India’s goal of becoming self-sufficient in advanced battery materials. The Karnataka government has pledged infrastructure support and expedited approvals for the project.
This investment comes as India intensifies efforts to develop a robust domestic EV supply chain. At present, the country relies heavily on imported battery materials, particularly from China. In response, the Indian government has introduced production-linked incentive (PLI) schemes to promote local manufacturing of EV components and batteries.
India’s EV market has witnessed remarkable growth, with sales tripling in 2023 compared to the previous year. However, securing a stable supply of battery materials remains a critical challenge. According to the International Energy Agency, India’s demand for EV batteries could surge to 60 GWh by 2026.
Epsilon Group, traditionally known for carbon black manufacturing, has been expanding its footprint in battery materials through its subsidiaries, Epsilon Advanced Materials and Epsilon CAM. The new facilities in Karnataka will also house a research centre dedicated to battery materials testing and development.
The global battery materials market is projected to reach $89.5 billion (£70.6 billion) by 2027, driven by rising EV adoption. India aims for 30% of its vehicles to be electric by 2030, necessitating significant investment in battery production and supply chains.
