Amid growing export restrictions on critical materials such as rare earth magnets, the global push to secure battery supply chains is accelerating. In India, however, efforts to reduce dependence on Chinese imports remain slow. Vikram Handa, MD, Epsilon Advanced Materials, tells Nitin Kumar that the Indian over-reliance on China poses serious risks to its long-term ambitions in clean energy and electric mobility. Excerpts:
What’s the current status of your graphite anode projects in the US and India?
We announced our 60,000 thousand tonne per annum (TPA) graphite anode facility in the US in October 2023. We received air and water permits in April 2025, which clears the way for construction. The first phase, with 30,000 TPA capacity, is expected to be operational by 2027. Full capacity should be reached by 2030. In India, our 30,000-tonne plant in Karnataka is scheduled to go live in early 2027. We plan to scale that up to 100,000 tonne by 2030. The next step is finalising customer contracts. In the US, that process was delayed due to election uncertainty and shifting tariff policies. But with tariffs on Chinese goods rising and policy direction becoming clearer, companies are now engaging. We expect to sign contracts in the next three to four months. In India, though, there’s little movement. Most cell manufacturers still rely heavily on Chinese imports.
Why aren’t Indian firms like Ola Electric, Reliance, or Amara Raja signing with local raw material suppliers?
Because Chinese materials are cheaper. In the US, companies are now negotiating structured contracts that offer cash flow visibility and enable us to raise funding and begin construction. These are long-term, take-or-pay agreements. It takes five years to qualify a supplier. Once that’s done, the material becomes tightly integrated into the vehicle platform, making change expensive. Indian players should at least start the process by signing a non-binding commitment. Without that, there’s no progress.
Do you have the capacity to support local demand?
Yes. A 30,000-tonne facility supports 30 GWh of cell manufacturing. We tell Indian companies that even if China is cheaper, source 20–25% locally to de-risk your supply chain. They face two major risks. First, China is dumping now, but prices can spike anytime. Second, export restrictions can return, as we have already seen with rare earth magnets. Graphite could be next, creating bottlenecks in cell manufacturing.
So, without supplier qualification, we won’t see localisation for at least five years?
Correct. The US is already three to four years ahead. They are qualifying suppliers now.
What’s your view on the ACC PLI scheme?
The policy intent was right, but it’s not delivering. I told Niti Aayog years ago that if you support only cell makers, material suppliers won’t survive. Officials believed the PLI winners would create downstream demand. But their margins are thin and they are still importing. Now they say there are no local suppliers, which isn’t true. That’s why the government is penalising some of them for non-compliance.
Should India impose duties on imported battery materials?
Yes. Today, India has zero duty on graphite, and China is dumping. The US has imposed duties of 25%, which are likely to rise above 700% after trade investigations. China also controls what tech it exports. Much of what comes to India is B-grade material. If even one item is restricted, India’s battery production could stall.
