Indian firm EAM to invest $650Mn in U.S. EV battery materials plant

Epsilon Advanced Materials (EAM), an Indian firm, has unveiled plans to establish a $650 million battery materials and components plant in North Carolina by 2026. This facility is anticipated to cater to up to 1.1 million electric vehicles in the U.S. Based in Mumbai, EAM, a subsidiary of Epsilon Carbon, will produce anodes, the negative electrodes within batteries, utilizing both natural and synthetic graphite. The company is currently in talks with suppliers regarding the procurement of raw materials, including natural graphite.

Situated in Brunswick County, southwest of Wilmington, the plant will contribute to the emerging EV battery hub in the state. While EAM is engaged in advanced discussions with several battery manufacturers, specific names have not been disclosed. Establishing a domestic source for anodes and synthetic graphite can reduce dependence on Chinese imports, particularly given recent export restrictions imposed by China on graphite.

EAM's U.S.-made battery components and materials are likely to qualify for incentives under the Inflation Reduction Act and related U.S. legislation aimed at fortifying domestic supply chains for EVs and batteries. EAM foresees the North Carolina plant reaching full production capacity by 2031, with an annual output target of 50,000 standard tons of anode materials. China presently dominates the production of synthetic graphite, a trend expected to continue with estimates indicating a rise from 1.6 million metric tons in 2023 to 2 million by 2030.