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US tariffs on Chinese graphite spark opportunity for India’s Epsilon
US Tariffs Create Opening
The United States imposed a 93.5% tariff on imports of graphite anode materials from China in July, disrupting supply chains and creating uncertainty over future prices. This move has opened the door for India’s Epsilon Advanced Materials to step in as a major alternative supplier of the key battery component.
Epsilon Eyes Japanese and Korean Partnerships
Vikram Handa, managing director of Epsilon, revealed that the company is in advanced talks with Japanese and South Korean battery makers operating in the U.S. While many companies previously adopted a “wait and see” approach, Handa said he now expects contracts to be finalized within 60 to 80 days.
US Manufacturing Push
Epsilon announced plans in October 2023 to build a $650 million graphite anode materials plant in North Carolina. The facility, with a planned capacity of 30,000 tonnes annually, is expected to begin operations by mid-2027, pending permits, environmental clearances, and confirmed orders.
Scale of US Demand
The U.S. requires about 500,000 tonnes of anode materials annually for electric vehicle (EV) and energy storage batteries. Until now, most of this demand was met by China, which refines over 90% of the world’s graphite. Anodes are crucial for fast-charging and driving range in EVs.
Expansion in India
In addition to its U.S. project, Epsilon is planning to invest over $1.1 billion in a 100,000-tonne facility in Karnataka, India. However, domestic demand has been limited due to the continued availability of low-cost Chinese supplies.
Handa urged Indian companies to secure at least 20% of their supply from Epsilon to safeguard against potential disruptions. “If China closes the tap, they will need an alternative supplier,” he warned.
A Warning for India
Handa expressed concern that India’s reliance on cheap Chinese inputs could mirror the country’s earlier dependence on rare earths. “I hope this rare earth story doesn’t play out the same way for battery materials,” he said.
“US tariffs on Chinese graphite spark opportunity for India’s Epsilon” “US tariffs on Chinese graphite spark opportunity for India’s Epsilon”