Despite China's near-monopoly in the global supply of battery components for electric vehicles (EVs) and energy storage systems (ESS), Mumbai-based Epsilon Advanced Materials Pvt Ltd (EAMPL), a six-year-old company focused on manufacturing high-quality, high-performance advanced battery materials (anode and cathode) for the EV and ESS segments, has managed to secure advance supply contracts with international players for its upcoming manufacturing facility in Karnataka.

The company has already signed an international customer for 30% of the 30,000-tonne capacity it plans to establish by the end of 2027. “We are in discussions with other customers as well and expect to tie up supply contracts for the entire capacity by the end of August,” says Vikram Handa, Managing Director, EAMPL. Acknowledging that the low prices quoted by Chinese companies pose a major challenge, Handa says the orders his company is receiving indicate the China +1 strategy being adopted by global original equipment manufacturers (OEMs) to minimise supply chain risks. “There is pricing pressure on everyone because of the low prices China is quoting. But it is very important to understand the geopolitical situation and the need to be self-reliant,” he says.

Incidentally, the Indian market for battery components is just evolving. Handa says he wants to commission a 30,000-tonne plant, as anything below that capacity is simply not feasible. “We are looking at the export market. We aim to cater to Korea, Japan, and the US, and reserve about 5,000–6,000 tonnes for the Indian market. As India grows, we will allocate more volume to Indian customers and expand here,” he explains.

Epsilon Advanced Materials is also constructing a 30,000-tonne capacity plant in the US to cater to the growing demand for battery components there. “We have been working on it for two years now. And with all the recent clarifications on policy and tariffs, US customers are eager to buy from within the US. So, this opportunity to onshore manufacturing is encouraging customers to give us contracts,” he says. According to Handa, the US consumes 500,000 tonnes a year, and it is all currently sourced from China. “So, our 30,000-tonne capacity is very small,” he explains.

The US manufacturing facility is also expected to be commissioned around the same time as the India facility. Products for testing and licensing requirements are being supplied from the existing 2,000-tonne unit already operating in Karnataka. “All the qualifications have happened from India. It's the exact same plant that we are going to build there. For the last year and a half, we have been completing our environmental permitting, which we have now finished. We are the only graphite manufacturer in the US that has a permitted project right now. We are discussing the advance supply contracts and will begin execution to complete the project by 2027,” Handa said.