Epsilon to build world’s first nodule processing plant with Rs 1,200 crore

Mumbai, Apr 5 (PTI) Carbon black producer Epsilon Carbon has announced setting up of the world’s first polymetallic nodule plant with an investment of Rs 1,200 crore as part of its plan to foray into the cathode sector.

Epsilon has also tied up with a US company to ensure the supply of nodules for this plant.

Epsilon on Tuesday signed an agreement with Nasdaq-listed ‘The Metals Company’ (TMC). Nodules are used as raw materials for making cathodes for lithium-ion batteries. Many metal-rich nodules are found at the bottom of the deep ocean.

Epsilon Promoter and Managing Director Vikram Handa said TMC will supply 1 million tonnes of nodules under this agreement. With this, 30,000 tonnes of cathodes will be made in the proposed plant which can generate capacity of 25 GW by the year 2025.

As per the terms of the agreement, both the companies will also conduct a feasibility study of setting up a commercial plant for processing deep-sea nodules.

Handa said the two companies will jointly set up the world’s first commercial polymetallic nodule processing plant with an initial investment of Rs 1,200 crore. For this, the entire investment will be done by Epsilon Carbon.

Handa told PTI that talks are on with several states regarding the proposed plant and a decision on the location of the plant is expected soon. He expects the construction of the plant to start by the end of this financial year and to start operations by 2025.

Although domestic demand for cathode is nil with no company involved in lithium-ion battery production domestically, its market is expected to grow to one lakh tonnes by 2030.

Speaking on the occasion, Gerard Baron, Chairman and Chief Executive Officer (CEO) of TMC said that the Government of India is striving for the development of a low-cost and eco-friendly economy and this is reflected in the development of the Polymetallic Nodule Collection System.