Canadian Lithium Developer E3 Signs Supply Agreement with Indian Battery Manufacturer

E3 Lithium Ltd., a Canadian lithium development company based in Alberta, and Epsilon CAM Pvt. Ltd., an Indian manufacturer of cathode active materials (CAM), announced on September 15, 2026 that they have signed a Memorandum of Understanding (MOU) for the potential long-term supply of battery-grade lithium carbonate.

The non-binding agreement contemplates the supply of up to 5,000 tonnes per year of battery-grade lithium carbonate over a five-year term. That volume would represent up to 40% of E3 Lithium's proposed Stage 1 production of 12,000 tonnes per year from its Clearwater Project in Alberta. Final volumes and commercial terms remain to be negotiated and would be formalised in a definitive agreement.

E3 Lithium's Clearwater Project holds Measured and Indicated mineral resources of 16.2 million tonnes of lithium carbonate equivalent at a grade of 75.5 mg/L. A Pre-Feasibility Study completed in June 2024 outlined a pre-tax net present value of USD 5.2 billion for the project, with an after-tax NPV of USD 3.7 billion. The company has not yet reached a final investment decision, and the MOU is conditional on the project advancing through permitting and a feasibility study.

Epsilon CAM's LFP Cathode Material Push in India

Epsilon CAM, established in 2023, manufactures Lithium Iron Phosphate (LFP) cathode active materials for lithium-ion batteries. The company operates an ISO 9001-certified Cathode Technology Centre in Moosburg, Germany, and is constructing a 30,000-tonne-per-year cathode materials facility in India, with Phase 1 completion targeted for early 2028.

Why E3 Lithium and Epsilon CAM Signed This Deal

For E3 Lithium, securing offtake commitments is a prerequisite for advancing its Clearwater Project toward a final investment decision. For Epsilon CAM, the agreement is part of a strategy to diversify its sources of raw materials across multiple geographies.

India's EV Battery Supply Chain and Lithium Demand Outlook

Lithium carbonate is a key input in the production of LFP cathode materials, which are used in electric vehicle batteries and energy storage systems. Demand for battery-grade lithium has grown alongside the expansion of the global EV market, though prices have been subject to volatility in recent years due to supply fluctuations.

The MOU does not obligate either party to complete a transaction. Both companies said they expect to progress toward a definitive agreement as E3 Lithium advances its project milestones.