Epsilon Group has signed a Memorandum of Understanding (MoU) with the Government of Karnataka to invest INR 15,350 crore over the next decade. The investment will focus on setting up state-of-the-art manufacturing and research facilities for EV battery materials, testing, and training, aiming to strengthen India’s electric vehicle ecosystem.
The investment plan includes INR 9,000 crore for a Graphite Anode manufacturing plant, INR 6,000 crore for a Lithium Iron Phosphate (LFP) Cathode manufacturing plant, and INR 350 crore for an advanced battery materials R&D and testing centre under Inspire Energy Research Centre Pvt Ltd. These facilities will produce sustainable and high-performance materials for Indian and international battery manufacturers, addressing critical supply chain gaps and reducing reliance on imports. The initiative also aims to achieve high Domestic Value Addition (DVA), with 100% for anode materials and 60% for cathode materials, significantly enhancing local value creation and supply chain resilience.
The project is expected to create more than 2,000 direct jobs in Karnataka, furthering the state’s ambition to become India’s energy transition hub. The state government will provide necessary approvals, incentives, and infrastructure support to facilitate the development of these facilities. This partnership positions Karnataka as a key destination for battery materials production and a hub for energy transition innovation.
Vikram Handa, Managing Director, Epsilon Group, stated “This association marks a significant milestone in India’s transition towards clean energy and the EV revolution. Our investment aligns with our vision of making India self-reliant in advanced battery materials and supporting the country’s EV ambitions.”
The facilities will manufacture high-performance Graphite Anode and LFP Cathode materials, crucial components for EV batteries. By enabling local production, Epsilon Group aims to reduce India’s dependency on Chinese imports and attract global Original Equipment Manufacturers (OEMs) and battery manufacturers seeking reliable, non-China-dependent supply chains.
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