Indian Economy News

Epsilon Carbon forays into battery material business, plans to invest Rs 500 crore by 2025

  • IBEF
  • August 25, 2020

Epsilon Carbon, a coal tar derivatives company, has entered the battery material business by setting up a manufacturing facility in the Ballari region of Karnataka to produce graphite anode materials for Lithium-Ion batteries.

“As India pushes an aggressive EV policy…Epsilon’s manufacturing of graphite anodes will make India self-sufficient for a key raw material for LiB cells,” said Mr Vikram Handa, Managing Director of Epsilon Carbon.

Epsilon Advanced Material, the company’s newly formed subsidiary, plans to invest Rs 500 crore (US$ 70.93 million) by 2025 to establish 50,000 tonnes of anode material capacity, Mr Handa added.

Carbon materials and alloy-based materials including silicon, tin and antimony, and nitrides are anode materials.

The company has completed its phase 1 of the project which was to set up manufacturing facility to produce 2500 tonnes per annum (TPA) of bulk carbonaceous mesophase, a key raw material in making Lithium ion batteries, and it is now working on increasing the capacity to 15,000 tpa by the end of FY21.

The patent was filed by Epsilon to protect its knowhow and technology.

“Epsilon Advanced Materials is formed with the purpose of becoming a preferred supplier of synthetic graphite material to cell manufacturers and energy storage device companies across the globe,” the company said in a statement.

“Trials have started with anode material producers and cell manufacturers globally to start the qualification phase”, Mr Handa said.

The company is based in Mumbai and will also be distributing customized graphite powder that is used in a variety of specialized products and industries. These consist of molding and castings for the metal industry, brake linings, lubricants, and crucibles used in a variety of applications.

In March 2020, the company has announced its plan to set up a Rs 900 core (US$ 127.68 million) integrated carbon black facility in Ballari district, Karnataka, with a total capacity of 3,00,000 tonnes per annum. But due to COVID-19, plans were delayed, and the plant will be commissioned by October 2020, the company said.

Carbon black is an additive used in rubber products such as tyres, colouring pigment inks and as electric conducive agents for high-tech devices.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.