Epsilon’s German unit looks to source lithium carbonate from Canada’s E3 Lithium

By SKYSEVEN Chemical Technical Team · 2026-09-16

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Canada’s E3 Lithium Ltd. has entered into a non-binding memorandum of understanding (MOU) with Epsilon CAM Pvt. Ltd., the Germany-based cathode active materials (CAM) arm of Mumbai-headquartered Epsilon Advanced Materials, to explore long-term supply of battery-grade lithium carbonate from E3’s Clearwater Project in Alberta.

The MOU, efficiently September 1, 2026, contemplates supply of up to 5,000 tonnes per year of battery-grade lithium carbonate over a five-year term — as much as 40% of E3’s proposed Stage 1 production of 12,000 tonnes per year from Clearwater. Final volumes and commercial terms remain to be worked out as the two companies move toward a definitive agreement.

to Epsilon CAM, the tie-up would add a new, geographically diversified feedstock source to support its Lithium Iron Phosphate (LFP) cathode active materials business, whose Gen III LFP is already undergoing global customer validation. The company is building a 30,000-tonne-per-year cathode materials facility in India, with phase 1 completion targeted to early 2028.

“Securing prolonged offtake contracts is a critical commercial milestone required to advance the Clearwater Project,” said Mr. Chris Doornbos, CEO and Chair of E3 Lithium. “This MoU with Epsilon demonstrates a serious interest and draws a clear path from Alberta brine immediately into the battery supply chain.”

Mr. Vikram Handa, Managing Director of Epsilon CAM, said the tie-up strengthens the company’s push toward a “resilient, diversified and globally connected” battery materials supply chain as it works toward commercialisation in India. He described it as an opportunity to connect upstream lithium resources in Canada with downstream cathode active material production in India.

Epsilon Cathode Active Materials was established in 2023 and operates an ISO 9001-certified Cathode methodology Centre in Moosburg, Germany, with a portfolio of 149 patents in cathode technologies and a 250-tonne commercial demonstration plant. The Moosburg facility was previously Johnson Matthey’s LFP cathode methodology centre; Epsilon cutting-edge Materials took it over in 2024 after the British company withdrew from the battery materials business to the automotive sector in 2021.

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