E3 Lithium, Epsilon CAM Sign MOU for Up to 5,000 Tonne Annual Lithium Carbonate Supply

E3 Lithium Ltd and India-based Epsilon CAM Pvt. Ltd have signed a non-binding Memorandum of Understanding (MOU) covering the potential supply of battery-grade lithium carbonate from E3 Lithium’s Clearwater Project in Canada.

The companies announced the agreement on September 15, 2026. Under the MOU, E3 Lithium could supply up to 5,000 tonnes of lithium carbonate per year to Epsilon CAM for a period of five years.

The MOU does not constitute a final supply agreement. The two companies are expected to determine the final volumes and commercial terms as discussions progress towards a definitive agreement.

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Supply Linked to Clearwater Project

The proposed supply would come from E3 Lithium’s Clearwater Project. The company has proposed a Stage 1 production capacity of 12,000 tonnes of lithium carbonate per year.

If the full 5,000-tonne annual volume is agreed, the supply to Epsilon CAM would account for around 40% of the proposed Stage 1 output. The MOU is subject to further discussions and the progress of the Clearwater Project, including permitting, demonstration work and the completion of a feasibility study.

Epsilon CAM’s LFP Plans

Epsilon CAM develops and manufactures lithium iron phosphate (LFP) cathode active materials for lithium-ion batteries.

The company said its Gen III LFP product is undergoing customer validation. It is also developing a cathode materials facility with a planned capacity of 30,000 tonnes per year. Phase 1 of the facility is expected to be completed by early 2028.

The proposed lithium carbonate supply from Canada would provide Epsilon CAM with an additional source of lithium for its cathode materials operations.

Definitive Agreement Yet to Be Signed

The current MOU is non-binding, and the companies have not disclosed final pricing or confirmed supply volumes.

According to E3 Lithium, the terms of a potential definitive agreement are expected to follow industry practices for lithium offtake agreements. Further agreements will depend on the development of the Clearwater Project and its progress towards a final investment decision.

“Securing long-term offtake contracts is a critical commercial milestone required to advance the Clearwater Project," said Chris Doornbos, CEO & Chair of E3 Lithium. "This MOU with Epsilon demonstrates a serious interest and draws a clear path from Alberta brine directly into the battery supply chain. We look forward to advancing our negotiations and relationship with Epsilon as our Clearwater Project moves toward shovel-ready."

Vikram Handa, Managing Director of Epsilon CAM, said, “The electric mobility growth requires a battery materials supply chain that is resilient, diversified and globally connected. Our engagement with E3 Lithium strengthens this approach as we progress towards commercialization in India with a 30,000 tonnes cathode materials facility. This is also a great opportunity to connect upstream lithium resources in Canada with downstream cathode active material production in India, for development of a more diversified battery materials & battery value chain.”

Elctrik Speaks

The proposed agreement links a Canadian lithium development project with an Indian LFP cathode materials manufacturer. If a definitive supply agreement is signed, Epsilon CAM could receive up to 5,000 tonnes of battery-grade lithium carbonate annually for five years.

However, the current MOU does not confirm that the full volume will be supplied. The final quantity, pricing and other commercial terms are yet to be agreed.