E3 Lithium Signs MoU to Supply Lithium Carbonate to Epsilon

E3 Lithium and Epsilon CAM Sign Lithium Supply MoU

E3 Lithium and Epsilon CAM have signed a non-binding memorandum of understanding covering the potential supply of battery-grade lithium carbonate from the Clearwater Project in Alberta, Canada. The MoU took effect on September 1, 2026, and contemplates annual deliveries of up to 5,000 tonnes for five years. That potential volume represents as much as 40% of the proposed Stage 1 production capacity of 12,000 tonnes per year. The agreement establishes a framework for a possible future supply relationship, while the final volumes and commercial conditions remain subject to a definitive agreement between the two companies.

Clearwater Project Advances Toward Investment Decision

The proposed lithium carbonate supply is tied to the ongoing development of the Clearwater Project in Alberta. E3 Lithium said the project is advancing through permitting, demonstration work and feasibility studies before reaching a final investment decision. The company has proposed Stage 1 production capacity of 12,000 tonnes of lithium carbonate per year, making the contemplated agreement with Epsilon CAM potentially significant for the project's future offtake profile. However, because the memorandum is non-binding, the contemplated supply volumes and commercial terms are not yet final and would need to be established through a definitive agreement.

Epsilon CAM Targets LFP Cathode Materials Expansion

The potential supply would support Epsilon CAM's LFP cathode active materials business in India. Epsilon is developing a cathode materials facility with planned annual capacity of 30,000 tonnes, while Phase 1 is scheduled for completion by early 2028. Its Gen III LFP technology is currently undergoing customer validation, linking the planned manufacturing expansion with ongoing technology qualification. The proposed lithium carbonate arrangement could therefore provide a potential raw-material supply relationship for the company's planned LFP materials operations, although the final commercial structure and supply commitment remain dependent on a definitive agreement.

Epsilon's Technology Platform Continues Validation

Epsilon's technology development activities also include a technology center in Germany that holds 149 patents and operates a 250-tonne commercial demonstration plant. Its Gen III LFP technology is undergoing customer validation as the company works toward its planned cathode materials capacity. The combination of technology validation, demonstration-scale operations and the proposed 30,000-tonne-per-year facility forms the broader development context for the contemplated lithium carbonate supply. The arrangement could connect upstream material production from Canada with downstream LFP cathode active materials production in India, subject to completion of the required commercial and project-development steps.

Potential Supply Volume and Commercial Terms

The MoU contemplates up to 5,000 tonnes of battery-grade lithium carbonate annually over five years, but it does not establish final binding delivery obligations. If the maximum contemplated volume were realized, it would equal up to 40% of the proposed 12,000-tonne annual Stage 1 production capacity. The definitive agreement will determine the actual supply volumes and commercial terms. For the Clearwater Project, securing a potential downstream customer could provide a defined framework for part of its proposed output, while Epsilon could gain a potential source of battery-grade lithium carbonate for its LFP cathode active materials activities.

Industry Impact & Outlook

The proposed arrangement could strengthen the connection between Alberta lithium production and India's expanding LFP cathode materials supply chain by establishing a potential upstream-to-downstream relationship. Its practical significance will depend on Clearwater's progress through permitting, demonstration work, feasibility studies and a final investment decision, as well as Epsilon's customer validation and facility-development milestones. If the parties ultimately sign a definitive agreement, the contemplated annual volume could give Epsilon greater visibility into potential lithium carbonate supply while providing E3 Lithium with a potential outlet for a meaningful portion of proposed Stage 1 production. The next major developments are therefore likely to center on project advancement, commercial negotiations and technology validation.

Frequently Asked Questions

What does the E3 Lithium and Epsilon CAM MoU cover?
The memorandum covers potential battery-grade lithium carbonate supply from the Clearwater Project in Alberta to support Epsilon CAM's LFP cathode active materials business in India. It contemplates up to 5,000 tonnes per year for five years, representing as much as 40% of proposed Stage 1 production capacity. The agreement is non-binding, so final volumes and commercial terms have not been established. Those details would be determined through a definitive agreement, while the Clearwater Project continues through permitting, demonstration work and feasibility studies before a final investment decision.