Epsilon to invest Rs 15,350 Cr for EV battery facility in Karnataka
This strategic investment, planned over the next 10 years, will bolster India's electric vehicle ecosystem, creating thousands of jobs, and strengthen India's position as a hub for advanced battery technology.
Epsilon Group on Wednesday announced its plan to invest Rs 15,350 crore in developing a manufacturing and research facility for EV battery testing and advanced materials in Karnataka.
A Memorandum of Understanding (MoU) with the Government of Karnataka (GoK) has been signed to this effect at the Invest Karnataka Summit in Bengaluru, Epsilon said.
This strategic investment, planned over the next 10 years, will bolster India's electric vehicle ecosystem, creating thousands of jobs, and strengthen India's position as a hub for advanced battery technology, it said.
As part of the MoU, Epsilon Group, along with its subsidiaries Epsilon Advanced Materials and Epsilon CAM Pvt Ltd will manufacture sustainable and high-performance graphite anode and lithium iron phosphate (LFP) cathode battery materials while Inspire Energy Research Center Pvt Ltd will focus on R&D, testing and training for EV battery materials and battery manufacturers.
The plan includes an investment of Rs 9,000 crore to set up a graphite anode manufacturing plant, Rs 6,000 crore for an LFP cathode manufacturing plant, and Rs 350 crore for battery materials and battery testing R&D and training centre, the company said.
This initiative supports Karnataka's ambition to become India's energy transition hub, making the state a key destination for battery materials production, Epsilon said.
Epsilon Group will cater to Indian battery manufacturers, enabling them to access locally produced, high-performance materials to enhance supply chain resilience and support India's growing EV market.
"This association marks a significant milestone in India's transition towards clean energy and EV revolution. Our investment in Karnataka aligns with our vision of making India self-reliant in advanced battery materials and supporting the country's EV ambitions," said Vikram Handa, Managing Director, Epsilon Group.
He further said that the group is committed to creating jobs, fostering technology innovation, and promoting sustainable manufacturing to drive economic growth within the state to strengthen the vision of Viksit Bharat.
To meet the rising demand for EVs in India, Epsilon Group will act as a sustainable and reliable manufacturer of graphite anode and LFP cathode materials, reducing dependence on imports and supporting Indian cell manufacturers in achieving higher Domestic Value Addition (DVA), the company said.
Epsilon can deliver 100% DVA for anode materials, while cathode materials achieve 60% DVA, significantly enhancing local value creation and supply chain localisation.
The company said its investment is a crucial step toward reducing India's reliance on Chinese imports and building a localised, self-sufficient battery material ecosystem.
By establishing graphite anode and LFP cathode manufacturing plants, alongside an advanced R&D and testing center, Epsilon is ensuring that India develops indigenous capabilities in battery technology, it added.
It also said the investment will secure a sustainable supply of critical battery materials for domestic and international EV manufacturers, strengthen India's position as a global battery hub, reduce import dependency and enhance energy security to support the Atmanirbhar Bharat and Viksit Bharat vision.
Edited by Jyoti Narayan