"Epsilon Advanced Materials to Invest ₹9,000 Crore in New Anode Facility in Karnataka"

Epsilon Advanced Materials, a key player in battery materials manufacturing, has announced plans to establish a ₹9,000-crore anode production facility in Karnataka. The plant will have an annual production capacity of 90,000 tonnes, according to Vikram Handa, Managing Director of Epsilon Group.

The project will be developed in two phases. "In the first phase, we will invest ₹4,000 crore to build a 30,000-tonne capacity plant by Q4 2026, with the remaining ₹5,000 crore to be invested to scale up the facility to 90,000 tonnes by 2031," Handa said.

With the rising demand for electric vehicles (EVs) in India, the company aims to support local battery cell manufacturers with a reliable supply of anode and cathode materials. The groundbreaking ceremony for the new plant is expected in the next six to eight months, with construction anticipated to take around 18 months. "We plan to start supplying by the end of 2026 or early 2027," Handa added.

The first phase of the project will be funded through customer advances, debt, and project financing. Handa emphasized the long-term commitment of customers, stating, "Once a customer adopts our battery material, they are likely to stay with us for seven to eight years due to the high replacement costs."

Epsilon Carbon, the parent company, specializes in producing specialty carbon and carbon black for the tyre industry. Additionally, Epsilon is working on a separate ₹10,000-crore project in Odisha, with its first phase already under construction.

HBL