Epsilon Group has signed a memorandum of understanding (MoU) with the Karnataka government to invest ₹15,350 crore in manufacturing facilities for electric vehicle (EV) battery materials and testing. The investment, planned over the next 10 years, includes ₹9,000 crore for a graphite anode plant, ₹6,000 crore for a lithium iron phosphate (LFP) 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 supply domestic battery producers, with the company targeting 100% local value addition for anode materials and 60% for cathode materials.
Vikram Handa, Managing Director of Epsilon Group, emphasized that the investment aligns with India’s goal of becoming self-reliant in advanced battery materials. The Karnataka government will provide infrastructure support and necessary regulatory approvals for the projects.
India is working to establish a domestic EV supply chain, reducing its reliance on imported battery materials, mainly from China. The government has introduced production-linked incentives to boost local manufacturing.
EV sales in India tripled in 2023, but securing battery materials remains a challenge. The International Energy Agency estimates India’s EV battery demand could reach 60 GWh by 2026.
Epsilon Group, known for carbon black production, is expanding into battery materials through its subsidiaries. Its new Karnataka facilities will include a research center for battery materials testing and development.
With the global battery materials market projected to reach $89.5 billion by 2027, India aims for 30% EV adoption by 2030, requiring significant investment in battery manufacturing and supply chains.
