Epsilon Invests Rs 9,000 Crore in Karnataka Anode Facility
New Delhi, India – Epsilon Advanced Materials, a leading manufacturer of battery materials, has announced plans to establish a Rs 9,000 crore anode plant in Karnataka. The facility will have an annual production capacity of 90,000 tonnes and will be developed in two phases. The first phase will require an investment of Rs 4,000 crore, followed by an additional Rs 5,000 crore in the second phase, according to Epsilon Group Managing Director Vikram Handa.
Epsilon Advanced Materials Targets for Expansion
“So, we are looking to build a 30,000-tonne anode plant in India by Q4 2026, which will entail an investment of about Rs 4,000 crore. The plant will be scaled up to 90,000 tonne (capacity) by 2031. The total capex outlay is Rs 9,000 crore for our annual business in the next eight years,”
Vikram Handa, Epsilon Group Managing Director
As the demand for electric vehicles in India surges, domestic cell manufacturing companies are increasingly establishing battery plants within the country. The company is poised to play a pivotal role in this ecosystem by supplying sustainable and reliable anode and cathode materials. This positions Epsilon as a key player not only in the Indian market but also in the global supply chain for battery materials.
The company plans to break ground on the new anode plant within the next six to eight months, with construction expected to take approximately a year and a half. This significant investment will contribute to India’s self-sufficiency in the EV supply chain and boost the country’s economic growth.
Epsilon’s Rs 9,000 Crore Investment
The company is also building a new project in Odisha and announced an investment of Rs 10,000 crore in phases. The first phase is under construction.
“The idea is to have supply in the market by 2026-end or 2027 beginning, … There is a lot of stickiness of the customer with this product. Today, we need a customer, but once acquired they will remain with us for next seven to eight years because the cost to replace the battery material is too high,”
Vikram Handa, Epsilon Group Managing Director
Epsilon Carbon’s Odisha Venture Takes Shape
The parent organization, Epsilon Carbon, specializes in producing specialty carbon and carbon black, key components used in tire manufacturing. Currently, the company employs approximately 1,100 individuals, both directly and indirectly, at its manufacturing facility located in Karnataka.
“There is a lot of stickness of the customer with this product. Today, we need a customer, but once acquired they will remain with us for next seven to eight years because the cost to replace the battery material is too high, “
Vikram Handa, Epsilon Group Managing Director
Moreover, Epsilon Carbon is actively expanding its operations with a new project underway in Odisha. This ambitious venture involves a significant investment of Rs 10,000 crore, which will be phased in over time. The initial phase of the project is currently under construction.