Canadian lithium developer E3 Lithium has signed a non-binding memorandum of understanding (MOU) to supply up to 5,000 t/yr of battery-grade lithium carbonate to Indian cathode maker Epsilon CAM for five years.
The proposed volumes would account for up to 40pc of production from the first stage of E3's planned Clearwater project in Alberta, where the company aims to produce 12,000 t/yr of lithium carbonate. The agreement does not include binding commercial terms and remains subject to a definitive offtake agreement.
The deal is the latest step in E3's push to secure customers ahead of a final investment decision and commercial production. E3 produced battery-grade lithium carbonate at its Alberta demonstration facility last year and said its Clearwater project could start producing in 2028 or 2029, with an initial target of 12,000 t/yr of lithium carbonate equivalent and later expansion to 36,000 t/yr.
Epsilon is developing a 30,000 t/yr lithium-iron-phosphate cathode active materials plant in India, with first-phase completion targeted for early 2028, according to the companies.
Linking Canadian lithium to Indian batteries
The agreement broadens E3's downstream customer base beyond earlier partnerships focused on battery technology development.
E3 and US battery firm Pure Lithium agreed to work on lithium-metal battery production in Alberta in 2024, while Pure Lithium later secured a potential $300mn loan from the US Export-Import Bank and maintained a supply agreement with E3 for lithium feedstock.
The latest MOU also highlights a shift toward securing offtake channels into the lithium-iron-phosphate battery supply chain, where cathode production capacity is expanding outside China. Indian chemical manufacturer Epsilon Advanced Materials has separately been building an international battery materials business, including a planned graphite anode plant in North Carolina and a cathode research base in Germany.
E3 has received Canadian government support to advance Clearwater and secured up to C$4.7mn ($3.4mn) from the Critical Minerals Infrastructure Fund last year, while the project was also among previously approved recipients under Canada's wider critical minerals funding programme.
