Epsilon Group, a leading industrial conglomerate driving the global carbon black and advanced battery materials industry, has signed a Memorandum of Understanding (MoU) with the Government of Karnataka (GoK) to invest Rs. 15,350 crores in developing state-of-the-art manufacturing and research facility for EV battery testing & advanced materials.

This strategic investment, planned over the next 10 years, will bolster India’s electric vehicle (EV) ecosystem, creating thousands of jobs, and strengthen India’s position as a hub for advanced battery technology.

As part of the MoU, Epsilon Group, along with its subsidiaries Epsilon Advanced Materials and Epsilon CAM Pvt. Ltd. will manufacture sustainable and high-performance Graphite Anode and Lithium Iron Phosphate (LFP) Cathode battery materials while Inspire Energy Research Center Pvt. Ltd. will focus on R&D, testing & training for EV battery materials and battery manufacturers.

The plan includes an investment of Rs. 9,000 crores to set up a Graphite Anode manufacturing plant, Rs. 6,000 crores for a LFP Cathode manufacturing plant, and Rs. 350 crores for battery materials and battery testing R&D and training center.

The state government will facilitate necessary approvals, incentives, and infrastructure support for Epsilon Group’s projects, in line with its policies to promote industrial development. Epsilon Group will act as a sustainable and reliable manufacturer of Graphite Anode and LFP Cathode materials, reducing dependence on imports and supporting Indian cell manufacturers in achieving higher Domestic Value Addition (DVA). Epsilon can deliver 100% DVA for anode materials, while cathode materials achieve 60% DVA, significantly enhancing local value creation and supply chain localization.

Speaking on the occasion, Vikram Handa, Managing Director, Epsilon Group said, “This association marks a significant milestone in India’s transition towards clean energy & EV revolution. Our investment in Karnataka aligns with our vision of making India self-reliant in advanced battery materials and supporting the country’s EV ambitions. We are committed to creating jobs, fostering technology innovation, and promoting sustainable manufacturing to drive economic growth within the state to strengthen the vision of Viksit Bharat.”

Epsilon Group’s Rs. 15,350 crore investment in Karnataka is a crucial step toward reducing India's reliance on Chinese imports and building a localized, self-sufficient battery material ecosystem. By establishing state-of-the-art Graphite Anode and LFP Cathode manufacturing plants, alongside an advanced R&D and testing center, Epsilon is ensuring that India develops indigenous capabilities in battery technology.

This investment will secure a sustainable supply of critical battery materials for domestic and international EV manufacturers, strengthen India’s position as a global battery hub, reducing import dependency and enhancing energy security to support the Atmanirbhar Bharat and Viksit Bharat vision, fostering innovation and local employment with over 2,000 direct jobs and attract global OEMs & battery manufacturers looking for reliable, non-China-dependent supply chains.