London, September 15th (Argus) - Canadian lithium mining company E3 Lithium has signed a non-binding memorandum of understanding with Indian cathode material manufacturer Epsilon CAM. The two parties will supply each other with up to 5,000 tons of battery-grade lithium carbonate annually over a period of five years.
The expected supply volume under this agreement accounts for approximately 40% of E3's planned first-phase output of the Clearwater project in Alberta. The project aims to produce 12,000 tons of lithium carbonate equivalent annually. This agreement does not contain binding commercial terms and specific details still need to be determined through the final purchase agreement.
This collaboration is the latest move by E3 to attract customers, advance final investment decisions, and commercialize production. Last year, E3 produced battery-grade lithium carbonate at its demonstration plant in Alberta and stated that the Clearwater project is expected to start mass production in 2028 or 2029, with an initial target of 12,000 tons of lithium carbonate equivalent per year, and will gradually expand to 36,000 tons per year thereafter.
According to the relevant company, Epsilon is planning to build a 30,000-ton per year lithium iron phosphate cathode material plant in India, with the first phase of construction expected to be completed in early 2028.
This agreement expands E3's downstream customer base, extending its business scope beyond the previous focus on battery technology development partnerships.
In 2024, E3 reached an agreement with the US battery company Pure Lithium to jointly promote lithium metal battery production in Alberta. After that, Pure Lithium also received a loan of approximately 300 million US dollars from the Export-Import Bank of the United States and maintained a lithium raw material supply agreement with E3.
The latest memorandum of understanding also highlights that companies are actively expanding procurement channels in the lithium battery supply chain, while cathode production capacity outside China is continuously expanding. At the same time, Indian chemical manufacturer Epsilon Advanced Materials is also independently developing international battery material business, including planning to build a graphite anode factory in North Carolina and establishing a cathode research and development base in Germany.
E3 has received support from the Canadian government to advance the Clearwater project and received up to 4.7 million Canadian dollars (approximately 3.4 million US dollars) in funding from the Critical Minerals Infrastructure Fund last year. This project is also one of the previous approved recipients of the Canadian broader critical minerals funding program.
