If you’re eyeing a budget EV with an LFP battery, you’ll want to know that a fresh lithium supply is on the horizon. The memorandum of understanding between Epsilon CAM and E3 Lithium sets a floor of 5,000 tonnes per year of battery‑grade lithium carbonate over five years, a chunk that could shave a few rupees off the cost of each battery pack.
Epsilon CAM, founded in 2023, is building a 30,000‑tonne‑per‑year cathode facility in Maharashtra, with the first phase slated for early 2028. That capacity would put it in the same league as BHEL’s LFP line and Ambuja’s 20,000‑tonne plant, giving it enough volume to supply major OEMs like Tata Motors, Mahindra, and MG Motors.
The source of that lithium comes from E3 Lithium’s Clearwater Project in Alberta. With 16.2 million tonnes of lithium carbonate equivalent at a 75.5 mg/L grade, the pre‑feasibility study projects a pre‑tax NPV of USD 5.2 billion. The company is still in the permitting phase, but the MOU is a key step toward a full investment decision.
Policy‑wise, India’s 2026 battery‑in‑a‑box mandate and the proposed 15% import duty on lithium carbonate push domestic producers to lock in supply. By securing a steady stream from Canada, Epsilon CAM aligns with the government’s push for a self‑reliant battery ecosystem, potentially keeping prices in check for consumers.
The first batch of lithium carbonate is expected by late 2027, with full flow to the Indian plant by mid‑2028. For buyers, that means LFP‑powered EVs could arrive on shelves with a smaller price premium, while manufacturers get a more predictable supply of the critical raw material.