The LOI contemplates potential funding of up to $420 million, with a minimum repayment term of 20 years under EXIM’s Make More in America initiative
Epsilon Advanced Materials (EAM), a leading global manufacturer of sustainable battery materials (anodes and cathodes), announced it has received a non-binding Letter of Interest (LOI) from the Export-Import Bank of the United States (EXIM) to support capital funding for its battery-grade synthetic graphite facility in Leland, North Carolina.
The LOI contemplates potential funding of up to $420 million, with a minimum repayment term of 20 years under EXIM’s Make More in America initiative (MMIA).
"The U.S. is taking critical steps to build a resilient and self-reliant supply chain for clean energy technologies, and synthetic graphite is at the heart of this transformation," said Vikram Handa, Managing Director, Epsilon Advanced Materials Inc.
"Given the substantial growth in demand for graphite, a critical component of lithium-ion batteries, and the current domination of the supply chain by Chinese suppliers, EXIM’s LOI shows the strategic importance of establishing domestic capabilities in battery-grade graphite production and enhancing US competitiveness, especially in industries crucial to national security. EAM’s North Carolina facility will not only support the electrification and national security goals of the U.S. but also deliver long-term economic impact through job creation and industrial revitalization. We are honored by this support and look forward to deepening our partnership with EXIM as we bring this project to life."
EAM plans to commission 30,000 tons of battery-grade synthetic graphite by 2027 and expects to scale to 60,000 tons by 2030. EAM’s Leland Facility is well positioned to supply synthetic graphite to U.S. battery manufacturers and automotive OEMs for approximately 1 million electric vehicles.
EAM plans to submit a formal application in 2025 at which point it is expected that EXIM will finalize the necessary due diligence to determine if a final commitment may be issued. A final commitment, if any, must comply with EXIM policies and eligibility requirements, and will depend on meeting EXIM’s underwriting criteria, authorization process, finalization and satisfaction of terms and conditions. The LOI does not represent a funding commitment nor an indication of financing or project viability.