Canadian lithium developer E3 Lithium and Indian battery materials manufacturer Epsilon CAM have signed a non-binding Memorandum of Understanding (MoU) for the potential long-term supply of battery-grade lithium carbonate to India.
Up to 5,000 Tonnes of Lithium Carbonate Annually
Under the proposed agreement, E3 Lithium could supply Epsilon CAM with up to 5,000 tonnes of battery-grade lithium carbonate annually for five years.
The planned volume could account for up to 40% of E3 Lithium’s proposed Stage 1 production of 12,000 tonnes per year from its Clearwater Lithium Project in Alberta, Canada.
Key terms include:
- Supply of up to 5,000 tonnes annually
- Proposed five-year supply period
- Volumes and commercial terms yet to be finalised
- Definitive agreement subject to further negotiations
Clearwater Project Targets Major Lithium Production
E3 Lithium’s Clearwater Project has 16.2 million tonnes of measured and indicated lithium carbonate equivalent resources, grading 75.5 mg/L.
A June 2024 Pre-Feasibility Study estimated a pre-tax NPV of USD 5.2 billion, while the after-tax NPV was estimated at USD 3.7 billion.
However, the project has not yet reached a final investment decision. Its progress remains dependent on permitting and further feasibility work.
Epsilon CAM Expands Indian Cathode Manufacturing
Established in 2023, Epsilon CAM produces lithium iron phosphate (LFP) cathode active materials for lithium-ion batteries. The company is also developing a 30,000-tonne-per-year cathode materials facility in India, with Phase 1 targeted for completion in early 2028.
The proposed lithium supply would help Epsilon CAM diversify its raw-material sources while supporting the growing demand for LFP batteries used in electric vehicles and energy storage systems.
Offtake Deal Could Support Project Development
For E3 Lithium, securing offtake commitments is an important step toward advancing Clearwater to a final investment decision. The MoU remains non-binding, and neither company is currently obligated to complete the transaction.
If converted into a definitive agreement, the deal could strengthen the link between Canadian lithium resources and India’s rapidly expanding battery manufacturing ecosystem.
