E3 Lithium, a Canadian lithium development company, has taken a significant step toward establishing a long-term route from Alberta’s lithium resources into India’s rapidly developing battery materials industry.
The company has entered into a non-binding MOU with Epsilon CAM, a developer and manufacturer of lithium iron phosphate (LFP) based Cathode Active Materials (CAM) for lithium-ion batteries. The MOU establishes a framework for the potential long-term supply of battery-grade lithium carbonate from E3 Lithium’s Clearwater Project.
Under the proposed arrangement, Epsilon could purchase up to 5,000 tonnes per year of battery-grade lithium carbonate over a five-year term. If finalized at the maximum contemplated volume, the agreement would represent up to 40% of E3 Lithium’s proposed Stage 1 production capacity of 12,000 tonnes per year from the Clearwater Project.
The potential offtake would provide E3 Lithium with an important pathway toward securing long-term customers for future Clearwater production, while giving Epsilon access to a potential new source of battery-grade lithium carbonate from Canada. Final volumes, pricing and other commercial terms would be determined as the companies advance discussions toward a definitive agreement.
The MoU also comes as Epsilon moves to expand its position in the global battery materials supply chain. The company’s Gen III LFP technology is progressing through global customer validations, while Epsilon is developing a 30,000-tonnes-per-year cathode materials facility, with Phase 1 targeted for completion by early 2028.
For Epsilon, potential access to lithium carbonate from the Clearwater Project could strengthen its strategy of building a geographically diversified and resilient supply chain for critical battery materials.
“Securing long-term offtake contracts is a critical commercial milestone required to advance the Clearwater Project," said Chris Doornbos, CEO & Chair of E3 Lithium. "This MOU with Epsilon demonstrates a serious interest and draws a clear path from Alberta brine directly into the battery supply chain. We look forward to advancing our negotiations and relationship with Epsilon as our Clearwater Project moves toward shovel-ready."
Vikram Handa, Managing Director of Epsilon CAM, said, “The electric mobility growth requires a battery materials supply chain that is resilient, diversified and globally connected. Our engagement with E3 Lithium strengthens this approach as we progress towards commercialization in India with a 30,000 tonnes cathode materials facility.
"This is also a great opportunity to connect upstream lithium resources in Canada with downstream cathode active material production in India, for development of a more diversified battery materials & battery value chain.”
