Commits largest Indian investment in USA’s EV battery industry to power 1 million electric vehicles through its proposed facility
Epsilon Advanced Materials (EAM), India’s leading battery materials company, is planning to invest US$650 million in the USA. The company will establish 50,000 TPA synthetic graphite anode manufacturing facility in the USA to supply high-capacity anode materials produced through green technologies.
The proposed facility in USA will provide critical battery materials to power more than 1 million Electric Vehicles. Currently, this synthetic graphite anode processing facility is the largest Indian investment in the US electric vehicle battery industry. This investment is directed towards building a strong US-India trade relationship and contribute towards creating cleaner and sustainable energy alternatives. The joint statement by President of USA Joe Biden and India’s Prime Minister Narendra Modi acknowledged Epsilon Advanced Materials investment in USA.
EAM is currently evaluating multiple locations across the US for the proposed facility subject to regulatory approvals, environmental permits and state and local incentive agreements. It has already signed strategic supply agreements with local raw material suppliers and transport partners to create a seamless supply chain network with focus on minimizing carbon emissions and reducing transportation costs.
Through this facility, EAM will produce high-capacity synthetic anode materials, customized for specific cell chemistries. It is expected to generate revenue of more than US$ 500 million at full capacity by 2031. EAM will generate more than 1500 direct & indirect employment opportunities at this facility. The facility is expected to be commissioned by 2026.
Commenting on the development, Vikram Handa, Founder and Managing Director of Epsilon Advanced Materials says, “Our investment in the USA is driven by the intent of Energizing the World with clean energy solutions. The battery value chain is a critical enabler to electric mobility adoption, and we are channelizing our efforts to localize the battery manufacturing ecosystem. This will the help automakers leverage the EV subsidies under the U.S. Inflation Reduction Act and pass on the benefits to the end-user. I’m excited that we are bringing in the India patented anode manufacturing technology to the U.S. and leveraging it to contribute to the vision that the U.S. has for the EV battery ecosystem.”
The U.S. government has set up an ambitious goal for electric vehicles (EV) with the vision to convert 50% of vehicle sales to be electric by 2030 and generate 1000 GWh of battery capacity. With this facility, EAM will contribute to U.S. EV roadmap by ensuring local supply chain for EV batteries. The facility will contribute to the U.S. Government’s mandate of critical mineral security.
With the rapid growth of the electric vehicle (EV) market and the increasing demand for renewable energy sources, the requirement for critical minerals such as graphite has increased in recent years. Graphite shortages are expected to rise in coming years, with a global supply deficit of 777,000 tons expected by 2030. As per Benchmark Mineral Intelligence Report, about $12 billion of investment is needed by 2030 in graphite by 2035 to meet the growing demand.
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