Que: Can you tell us what Epsilon Advanced Materials is showcasing at Bharat Battery Show 2025?

Ans: We showcased advanced Graphite Anode and LFP cathode materials essential for battery manufacturing, particularly for electric vehicles and energy storage systems. The focus is on sustainable, high-performance materials that contribute to the global energy transition, supporting electric vehicle (EV) manufacturers and energy storage systems.

We specialize in synthetic graphite for anode materials, which offers superior consistency, performance, and longer cycle life compared to natural graphite. On the cathode side, our focus is on LFP & LMFP Cathode materials. Both LFP and LMFP enhance battery performance, efficiency, and safety, while also providing greater thermal stability and longer operational lifespan. Our commitment to innovation and sustainability ensures that our battery materials meet the demands of a rapidly evolving EV market.

Que: What differentiates your solutions from others in the market?

Ans: One of the key differentiators is that our synthetic graphite production is completely backward integrated with complete control over the entire supply chain from precursor to finished product, giving us a significant edge in terms of quality, reliability, and operational efficiency. Additionally, we are scaling our operations worldwide. By 2030 our 100k TPA plant in India will primarily cater to Indian and Asian customers, while our upcoming facility in Finland with 60k TPA by 2030 will serve the European market. In the U.S., we are setting up a 60K TPA by 2030 that will specifically cater to American customers.

On the cathode side, our cathode technology center in Germany, gives us over 20 years of expertise in manufacturing LFP and LMFP materials. Our process is proprietary and backed by more than 200 patents, making it distinct from the common Chinese LFP manufacturing process. This allows us to leverage a differentiated supply chain and provide a unique advantage to our customers. Particularly for Indian manufacturers benefiting from the Production Linked Incentive (PLI) scheme, where the government has set a target for 60 percent local value contribution over the next five years, we are well-positioned to provide the highest local value among any competitor in India.

Que: With the recent change in the US government, how has this impacted your business? Do you need to adapt your plans accordingly?

Ans: Policy decisions are best evaluated once fully implemented. While there is uncertainty regarding trade duties, the US has already imposed tariffs to protect its market, particularly against Chinese dumping. There is strong government support for the electric vehicle industry, and we believe that even with the new administration, these policies will largely remain favorable toward local U.S. manufacturing.

In December 2024, we filed a petition along with the American Active Anode Material Producers (AAAMP) alliance representing graphite producers in North America with the U.S. International Trade Commission (ITC) and the Department of Commerce (DOC). The petition seeks anti-dumping and countervailing duties on imported Chinese anode active materials (graphite used for lithium-ion battery anodes), addressing concerns over unfair trade practices and protecting domestic producers. The ITC's preliminary determination in February 2025 is a significant step forward, and the final determinations from the DOC are expected in the coming months.

Chinese producers supply ~100% of the US domestic demand at low prices subsidized by their government as part of the strategy to dominate the energy transition. EAM is working diligently to mitigate these challenges and remain on track to meet our long-term objectives.

Que: What technologies and innovations does Epsilon employ in manufacturing?

Ans: Our cathode materials are developed using proprietary process independent of Chinese technology or raw materials, and we are establishing a 10,000 TPA facility in Karnataka to support this.

On the Anode side, our synthetic graphite production follows an advanced agglomeration process, which enhances battery performance. We recently entered into a joint development agreement with Daejoo, a South Korean research and development company, to develop silicon-based graphite anode materials. This transition from lab-scale to pilot-scale production will eventually lead to commercialization, bringing significant benefits in terms of fast charging and extended battery range.

Another major innovation we are working on is hard carbon additives, developed by our research team in Karnataka, India. Hard carbon plays a crucial role in improving battery lifespan and cycle efficiency, ensuring that electric vehicles perform at their best. As we move forward, we continue to invest in research and development to advance the performance, longevity, and efficiency of battery materials.

Que: Are there any collaborations or partnerships with OEMs that we can expect in the coming years?

Ans: Yes, we are actively engaging with Auto OEMs and battery manufacturers across India, Europe, and the U.S. We are working with major Indian cell makers for initial sample testing, and we expect qualification with few of the. Surely, we expect binding offtakes in the coming years.

Que: How do you envision the future of the battery ecosystem in India, considering government policies and industry developments?

Ans: India’s PLI policy has been a game -changer, driving local battery production. Additionally, the government is exploring further support for battery materials manufacturing, which, if implemented, will provide a substantial boost to the sector. India has also signed an MoU for lithium refining and mining as part of its critical minerals’ agreement, which will play an essential role in strengthening the domestic supply chain.

With the rapid transition toward electric vehicles, the battery ecosystem in India is evolving at an accelerated pace. OEMs, cell makers, and battery material manufacturers are coming together to develop an integrated value chain. Our company, along with our partner LICO materials, which specializes in battery recycling, is actively contributing this transition, supporting a circular economy within the EV industry, where sustainability and efficiency go hand in hand.

Que: What are some key sustainability initiatives that Epsilon has implemented?

Ans: Sustainability is deeply embedded in our business operations with a clear focus on reducing global warming potential (GWP) for all our products. Our production process ensures zero liquid discharge, making it one of the most environmentally friendly systems in industry. Raw material for graphite anode is derived from resource circularity from our coal tar pitch processing facility which gives us Mesocoke, our main precursor. In the process of anode manufacturing, any pitch oil extracted is used again in the carbon black facility ensuring there's no waste in the whole process.

In addition to material efficiency, our manufacturing plants prioritize energy sustainability. Waste gases generated from our parent company’s facilities are converted into electricity, which is sufficient to power our entire production campus. This closed-loop system minimizes our carbon footprint while maintaining high energy efficiency. Through these initiatives, we are continuously working to enhance sustainability in the battery manufacturing value chain, ensuring that our processes align with the global shift toward cleaner energy solutions.