Epsilon Group has signed a memorandum of understanding with the Karnataka government to invest Rs. 15,350 crore in manufacturing facilities for electric vehicle (EV) battery materials and testing. The investment, planned over a 10-year period, includes Rs. 9,000 crore for a graphite anode plant, Rs. 6,000 crore for a lithium iron phosphate cathode facility, and Rs. 350 crore for research and development.
The project is expected to generate more than 2,000 direct jobs and aims to reduce India’s reliance on imported battery materials. According to the company, the facilities will manufacture materials for domestic battery producers, with the anode plant targeting 100% domestic value addition and the cathode plant aiming for 60%.
Epsilon Group’s Managing Director, Vikram Handa, stated that the investment is intended to support the domestic production of advanced battery materials. The Karnataka government will provide infrastructure support and regulatory approvals for the project.
India currently imports a significant portion of its battery materials, particularly from China. The central government has introduced production-linked incentive schemes to promote local manufacturing of EV components and batteries. The International Energy Agency estimates that India’s demand for EV batteries could rise to 60 GWh by 2026.
Epsilon Group, which has operations in carbon black manufacturing, has expanded into battery materials through its subsidiaries Epsilon Advanced Materials and Epsilon CAM. The planned facilities in Karnataka will also include a research center focused on battery materials testing and development.
India has set a target for 30% of its vehicles to be electric by 2030, requiring substantial investment in battery production and supply chains. The global battery materials market is projected to reach $89.5 billion by 2027, driven by increasing EV adoption.