E3 Lithium and Epsilon CAM Sign MoU for Lithium Supply

Canadian lithium development company E3 Lithium Ltd. and Indian cathode active material (CAM) manufacturer Epsilon CAM Pvt. Ltd. have signed a Memorandum of Understanding (MoU) for the potential long-term supply of battery-grade lithium carbonate. The companies announced the agreement on September 15, 2026. The non-binding MoU remains subject to further negotiations on final commercial terms.

Under the MoU, the companies are considering the supply of up to 5,000 tonnes of battery-grade lithium carbonate annually for five years. The proposed volume could represent around 40% of E3 Lithium’s planned Stage 1 production capacity of 12,000 tonnes per year from its Clearwater Project in Alberta, Canada. Final volumes and commercial terms will be agreed upon later and formalised through a definitive agreement.

E3 Lithium Clearwater Project has 16.2 million tonnes of Measured and Indicated Lithium Carbonate Equivalent (LCE) resources. According to its Pre-Feasibility Study completed in June 2024, the project has an estimated pre-tax Net Present Value (NPV) of USD 5.2 billion and an after-tax NPV of USD 3.7 billion. However, the company has not yet taken a Final Investment Decision (FID), and the MoU is conditional on the project progressing through permitting and feasibility studies.

Established in 2023, Epsilon CAM manufactures Lithium Iron Phosphate (LFP) cathode active materials for lithium-ion batteries. The company operates an ISO 9001-certified Cathode Technology Centre in Moosburg, Germany, and is developing a 30,000-tonne-per-year cathode materials facility in India, with Phase 1 expected to be completed by early 2028.

According to the companies, the agreement has strategic significance for both parties. For E3 Lithium, securing offtake commitments is important for advancing the Clearwater Project towards a Final Investment Decision, while Epsilon CAM aims to diversify its raw material supply sources across different geographies. Lithium carbonate is a key input for LFP cathode materials, which are used in electric vehicle batteries and energy storage systems.