Epsilon Group to Invest Rs 15,350 Crore in Karnataka EV Battery Materials Manufacturing

Epsilon Group has signed a memorandum of understanding with the Karnataka government to invest Rs. 15,350 crore in manufacturing facilities for electric vehicle battery materials and testing. The investment, spread over 10 years, includes Rs. 9,000 crore for a graphite anode plant, Rs. 6,000 crore for a lithium iron phosphate cathode facility, and Rs. 350 crore for research and development.

The project is expected to create more than 2,000 direct jobs in the state and aims to reduce India's dependence on imported battery materials. The facilities will manufacture materials for domestic battery producers, with the company stating it can achieve 100% domestic value addition for anode materials and 60% for cathode materials.

Vikram Handa, Managing Director of Epsilon Group, said the investment aligns with making India self-reliant in advanced battery materials. The Karnataka government will provide infrastructure support and necessary approvals for the projects.

The investment comes as India pushes to establish a domestic electric vehicle supply chain. The country currently imports most of its battery materials, particularly from China. The government has introduced production-linked incentive schemes to encourage local manufacturing of EV components and batteries.

India's electric vehicle market has grown significantly, with sales tripling in 2023 compared to the previous year. However, the industry faces challenges in securing a reliable supply of battery materials. The International Energy Agency projects that India's demand for EV batteries could increase to 60 GWh by 2026.

Epsilon Group, known for its carbon black manufacturing, has been expanding into battery materials through its subsidiaries Epsilon Advanced Materials and Epsilon CAM. The company's new facilities in Karnataka will include a research center focused on battery materials testing and development.

The global battery materials market is expected to reach $89.5 billion by 2027, driven by growing electric vehicle adoption. India aims to have 30% of its vehicles electric by 2030, requiring substantial investment in battery manufacturing and related supply chains.