Epsilon Advanced Materials received approval for its Epsilon C2GR anode material project under the Electronics Components Manufacturing Scheme (ECMS) of the Ministry of Electronics and Information Technology (MeitY). The project will receive ₹145 crore in CAPEX support, equivalent to 25% of its capital investment. The approval marks a significant step in India’s efforts to build domestic manufacturing capabilities for critical battery materials and reduce dependence on imports. Notably, Epsilon is the only company approved in this ECMS tranche for manufacturing anode material, a critical component of lithium-ion batteries.
Epsilon Targets a Domestic Battery Materials Supply Chain
The approval is expected to support the development of a stronger domestic, or “Swadeshi,” battery materials supply chain. As India expands its electric vehicle, energy storage and electronics industries, demand for locally manufactured battery materials is expected to grow rapidly. Through the Epsilon C2GR project, the company aims to strengthen indigenous technology, manufacturing capabilities and domestic value addition. Moreover, the project aligns with India’s broader Atmanirbhar Bharat vision by supporting the development of critical technologies and manufacturing infrastructure within the country.
ECMS Approves 106 Projects Across Electronics Components
The Electronics Components Manufacturing Scheme has so far approved 106 projects across 30 product categories. Together, these projects represent total investments of ₹69,548 crore and projected production worth approximately ₹5.34 lakh crore. Epsilon’s approval adds battery anode materials to the growing list of strategically important products receiving support under the scheme.
Graphite Anode Material Production Set to Scale Up
Epsilon Advanced Materials plans to build large-scale manufacturing capabilities for graphite anode materials, which play a vital role in lithium-ion batteries. The company aims to serve the growing requirements of electric mobility, stationary energy storage, digital devices and consumer electronics. Epsilon has already commissioned EAM-ONE, India’s first graphite anode material customer qualification plant, at Vijayanagar in Karnataka. The company is now progressing towards commercial-scale production. Epsilon plans to achieve 30,000 tons per annum of graphite anode material capacity by 2028. In the second phase, the company intends to expand capacity further to 100,000 tonnes per annum.
Indigenous Technology and R&D Drive Epsilon’s Expansion
According to Vikram Handa, Managing Director of Epsilon Group, the ECMS approval recognises the company’s efforts to develop indigenous graphite anode technology and manufacturing capabilities in India. He highlighted that building a resilient battery ecosystem requires strong capabilities in technology development, intellectual property, research and development, and process know-how. The MeitY support, therefore, is expected to accelerate Epsilon’s commercial scale-up and strengthen India’s domestic battery materials value chain. Epsilon’s graphite anode programme is supported by in-house R&D, intellectual property and technology development capabilities. These activities cover material development, process optimisation and electrochemical validation. The company also conducts testing across coin-cell, pouch-cell and multi-layer pouch-cell formats.
Epsilon Builds a Strong Intellectual Property Portfolio
Epsilon has filed 43 patents covering process, product and equipment technologies related to its battery materials programme. The company plans to develop an additional 50 intellectual property assets by 2030, reinforcing its focus on technology ownership and innovation. This growing IP portfolio could help Epsilon build differentiated capabilities as India develops its domestic battery manufacturing ecosystem.
Project Supports India’s Integrated Battery Ecosystem
The Epsilon C2GR project forms part of Epsilon Group’s broader strategy to establish an integrated battery materials ecosystem in India. By scaling domestic graphite anode material production, investing in indigenous technology and expanding its intellectual property portfolio, the company aims to increase local value addition and reduce India’s dependence on imported critical battery materials. As per the press release, as electric vehicles and energy storage systems gain momentum, the ₹145 crore MeitY support is expected to help Epsilon accelerate its anode material manufacturing plans and strengthen India’s position in the global battery materials value chain.
