Epsilon Advanced Materials (EAM) has successfully completed the purchase of a lithium-ion phosphate (LFP) cathode active material technology center in Moosburg, Germany. This strategic move positions EAM as the first company globally to offer manufacturers both cathode and anode materials for lithium-ion batteries, setting a significant milestone in the electric vehicle (EV) battery market.
The acquisition marks EAM's entry as the first entity in Asia, outside of China, to produce LFP cathode materials, a sector where currently about 70% of cathode materials and all LFP cathodes for lithium-ion batteries are manufactured in China.
Vikram Handa, the managing director of EAM, emphasized the acquisition's role in bolstering the company's commitment to the EV battery market, leveraging the advanced capabilities of the Moosburg center to lead in cathode material manufacturing. This development follows EAM's acquisition from Johnson Matthey, enhancing its standing as a pivotal player in the global EV battery materials sector and aiming to diminish the market's dependency on China.
EAM has disclosed plans for substantial investments in its manufacturing capabilities, including a $1.1 billion investment in Bellari, Karnataka, India, for an anode battery materials manufacturing facility. Additionally, a $650 million investment is planned for a graphite anode material manufacturing facility in Brunswick County, North Carolina, U.S., alongside a Euro 600 million investment for a graphite processing facility in Vaasa, Finland.
Sunit Kapur, EAM's CEO, announced the readiness to market a high-performance cathode active material, highlighting the integration of Moosburg's cathode technology with their anode business. This integration aims to provide comprehensive battery material solutions that enhance battery performance for customers.
The transition to LFP cathode materials by battery manufacturers is driven by the benefits of longer lifespan, superior discharge and charge efficiency, enhanced performance at higher temperatures, cost-effectiveness, and safety features compared to other materials like nickel and cobalt.
EAM plans to initiate construction of its Indian facility in 2024, with the goal to establish a large-scale customer qualification plant by 2025 and achieve a production scale of 100,000 tons by 2030. The Moosburg facility, employing around 25 people in R&D and operations, is expected to significantly reduce the technology development and scale-up timeframe for EAM. It is equipped for producing LFP and lithium manganese iron phosphate (LMFP) cathode materials on both laboratory and pilot scales, featuring a pilot customer qualification plant for new materials validation and employing a Hydrothermal process for cleaner metal processing, contributing to a more sustainable battery metals supply chain.
