Mumbai-based battery materials company Epsilon Advanced Materials Pvt Ltd (EAM) proposes to invest $650 million in the US to manufacture synthetic graphite anode, used in lithium-ion batteries, The plan is to set up a plant with 50,000 tonnes per annum capacity, though the company is yet to decide the exact location where it will come up.
The investment was first announced as part of a joint statement by Prime Minister Narendra Modi and US President Joe Biden during the former’s recent visit to the country. The company is currently evaluating multiple locations across the US for the proposed facility subject to regulatory approvals, environmental permits and state and local incentive agreements.
EAM is targeting a revenue of over $500 million once the facility starts operating at full capacity by 2031. The facility is expected to be up and running by 2026. The company is leveraging USA’s reluctance to depend on China for battery materials like graphite, which is already in shortage due to accelerating global demand.
The rapid growth of the electric vehicle market and the increasing demand for renewable energy sources has pushed up the requirement for critical minerals such as graphite in recent years. Graphite shortages are expected to rise in the coming years, with the global supply deficit pegged at 7.77 lakh tonnes by 2030.