New Delhi, Sep 15 (PTI) Battery materials manufacturer Epsilon Advanced Materials is planning to set up a Rs 9,000-crore anode plant in Karnataka with an annual production capacity of 90,000 tonne, a top official of the company said.

The investment in the plant would be made in two phases. In the first phase, Rs 4,000 crore would be invested and the remaining Rs 5,000 crore would be pumped in in the second phase, Epsilon Group Managing Director Vikram Handa said.

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"So, we are looking to build a 30,000-tonne anode plant in India by Q4 2026, which will entail an investment of about Rs 4,000 crore. The plant will be scaled up to 90,000 tonne (capacity) by 2031. The total capex outlay is Rs 9,000 crore for our annual business in the next eight years," Handa explained.

With increasing demand of electric vehicles in India, there is a need for Indian cell manufacturing companies to set up battery plants in the country. Epsilon products will act as a sustainable and reliable supplier of anode and cathode material to these cell companies.

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This way, Epsilon is playing a key role in the raw material processing ecosystem within the country and even for global demand.

The company plans the groundbreaking ceremony for the plant in the next six to eight months, Handa said, adding that the construction of the plant will take a year and a half.

"The idea is to have supply in the market by 2026-end or 2027 beginning," he explained.

The company plans to partly fund the project in the first phase by customer advance, debt and project financing as well because it is a big amount, he said.

"There is a lot of stickiness of the customer with this product. Today, we need a customer, but once acquired they will remain with us for next seven to eight years because the cost to replace the battery material is too high," Handa added.

The parent entity, Epsilon Carbon, is into the production of speciality carbon and carbon black that goes into tyres. Today, the company has about 1,100 people on-roll and off-roll operating at its plant in Karnataka.

The company is also building a new project in Odisha and announced an investment of Rs 10,000 crore in phases. The first phase is under construction.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)