Epsilon Advanced Materials, a battery materials manufacturer, is set to establish a Rs 9,000-crore anode production plant in Karnataka with an annual capacity of 90,000 tonnes, according to Managing Director Vikram Handa. The project will be developed in two phases, with an initial investment of Rs 4,000 crore, followed by an additional Rs 5,000 crore in the second phase.
The company aims to complete a 30,000-tonne capacity plant by Q4 2026 as part of the first phase. By 2031, production is expected to scale up to 90,000 tonnes. This move comes in response to the rising demand for electric vehicles in India, creating a need for reliable suppliers of anode and cathode materials for domestic battery manufacturers. Epsilon aims to fulfill this need and contribute to both local and global markets.
The groundbreaking ceremony is expected within six to eight months, with construction estimated to take around 18 months. Epsilon plans to have the plant operational by the end of 2026 or early 2027. The funding for the first phase will be sourced through customer advances, debt, and project financing. Handa noted that customer loyalty is strong in this industry, as replacing battery materials is costly, ensuring long-term partnerships with clients.
Epsilon Carbon, the parent company, currently produces specialty carbon and carbon black for tire manufacturing. The company employs about 1,100 people at its Karnataka plant and is also working on a new project in Odisha, with a planned investment of Rs 10,000 crore in phases. The first phase of the Odisha project is already under construction.
