E3 Lithium Clearwater Project MOU Targets India Supply Deal

E3 Lithium and Epsilon CAM Sign Lithium Supply MOU

E3 Lithium Ltd., a Canadian lithium development company based in Alberta, and Epsilon CAM Pvt. Ltd., an Indian manufacturer of cathode active materials, announced on September 15, 2026, that they signed a Memorandum of Understanding for the potential long-term supply of battery-grade lithium carbonate. The E3 Lithium Clearwater Project MOU outlines a non-binding framework between the two companies as they evaluate a potential supply relationship. The proposed arrangement connects lithium production planned in Alberta with cathode-material manufacturing in India, while leaving final volumes and commercial terms subject to further negotiations and a definitive agreement.

Proposed Supply Could Reach 5,000 Tonnes Annually

Under the MOU, E3 Lithium could supply up to 5,000 tonnes per year of battery-grade lithium carbonate to Epsilon CAM over a five-year term. That proposed volume would represent as much as 40% of E3 Lithium's proposed Stage 1 production capacity of 12,000 tonnes per year from the Clearwater Project in Alberta. The agreement remains non-binding, meaning neither company is obligated to complete the transaction. Final supply volumes, pricing, commercial conditions, and other contractual terms still need to be negotiated and formalized through a definitive agreement.

Clearwater Project Remains Subject to Further Development

The Clearwater Project has Measured and Indicated mineral resources of 16.2 million tonnes of lithium carbonate equivalent at a grade of 75.5 mg/L. A Pre-Feasibility Study completed in June 2024 outlined a pre-tax net present value of USD 5.2 billion and an after-tax NPV of USD 3.7 billion. However, E3 Lithium Ltd has not yet reached a final investment decision. The MOU is conditional on the project progressing through permitting and a feasibility study, so the proposed supply arrangement remains dependent on successful advancement of those development milestones.

Epsilon CAM Expands Cathode Materials Manufacturing

Epsilon CAM, established in 2023, manufactures Lithium Iron Phosphate cathode active materials for lithium-ion batteries. The company operates an ISO 9001-certified Cathode Technology Centre in Moosburg, Germany, and is constructing a 30,000-tonne-per-year cathode materials facility in India, with Phase 1 completion targeted for early 2028. The proposed lithium carbonate supply arrangement could support the company's effort to secure raw materials for its cathode-material operations. It also forms part of Epsilon CAM's strategy to diversify its raw-material sources across multiple geographies.

Offtake Supports E3 Lithium's Project Advancement

For E3 Lithium, securing offtake commitments is a prerequisite for advancing the Clearwater Project toward a final investment decision. The proposed arrangement with Epsilon CAM Pvt Ltd therefore provides a potential commercial pathway for a portion of planned Stage 1 output, although it does not by itself guarantee project financing, construction, or production. For Epsilon CAM, access to battery-grade lithium carbonate is relevant to its LFP cathode-material manufacturing plans. The relationship consequently addresses supply considerations for both companies while remaining subject to additional project and commercial milestones.

Lithium Carbonate Remains Important to LFP Production

Lithium carbonate is a key input in the production of LFP cathode materials used in lithium-ion batteries for electric vehicles and energy storage systems. Demand for battery-grade lithium has increased alongside the expansion of the global EV market, while lithium prices have experienced volatility in recent years because of changes in supply conditions. A potential supply relationship between Canada and India could therefore connect upstream lithium development with downstream cathode-material manufacturing. However, the commercial significance of the MOU will depend on whether the Clearwater Project advances and the parties ultimately execute a binding supply agreement.

Industry Impact & Outlook

The proposed arrangement could strengthen the connection between Canadian lithium development and India's expanding battery-material manufacturing base by providing a potential long-term source of battery-grade lithium carbonate for LFP cathode production. For E3 Lithium, the key near-term issue is advancing permitting, feasibility work, and other requirements needed before a final investment decision, while Epsilon CAM must continue developing its planned Indian production capacity. The next important milestone is therefore progress toward a definitive agreement alongside Clearwater Project development. Until those steps occur, the MOU should be viewed as a potential supply framework rather than a completed commercial transaction.

Frequently Asked Questions

What does the E3 Lithium and Epsilon CAM MOU cover?
The MOU outlines a potential five-year supply arrangement for battery-grade lithium carbonate from E3 Lithium's proposed Clearwater Project to Epsilon CAM. It contemplates up to 5,000 tonnes of supply annually, but the agreement is non-binding and does not establish final commercial terms. Volumes, pricing, and other conditions remain subject to negotiation and would need to be formalized through a definitive agreement. The proposed arrangement is also conditional on the Clearwater Project advancing through permitting and a feasibility study before E3 Lithium reaches a final investment decision.

How much lithium carbonate could E3 Lithium supply?
The proposed arrangement could cover up to 5,000 tonnes of battery-grade lithium carbonate per year for five years. That amount would equal as much as 40% of the Clearwater Project's proposed Stage 1 production capacity of 12,000 tonnes annually. The proposed supply therefore represents a significant portion of planned initial output, but it should not be treated as committed production because the MOU is non-binding. E3 Lithium must still advance the project through required development milestones, including permitting and a feasibility study, before the proposed supply can progress toward a binding transaction.