India Needs to Reduce Dependence on China for Critical Minerals: Vikram Handa
The Quad must reach an agreement on critical minerals processing and mining if it wants to meaningfully reduce dependence on imports from China, Vikram Handa, Epsilon Advanced Materials CEO, told HT in an interview.
Handa discussed the company’s $650-million investment to build a manufacturing facility in the US state of North Carolina and how access to US capital and technology, as well as a bilateral understanding with Washington that India is a trusted partner, will allow a domestic EV battery supply chain to come up in India.
About Epsilon Advanced Materials
Epsilon Advanced Materials is a company that focuses on the sustainable battery space. It was established in 2018 by Vikram Handa, who also set up Epsilon Carbon, the parent company, in 2010.
The company started by taking waste from a steel plant called coal tar, manufacturing coal tar pitch from it, and developing its own intellectual property to convert this waste into coke — a raw material needed to make synthetic graphite.
Expansion into the US
In 2023, Epsilon Advanced Materials announced a plan to build a $650-million graphite anode manufacturing facility in North Carolina. The vision behind this expansion is to support Korean and Japanese automotive customers at scale.
Handa explained that the company began a site search in November 2022 and reviewed more than 100 sites before finalizing North Carolina in October 2023. The site stood out for its proximity to a port, strong workforce, competitive incentives, and great support from state and local governments.
Impact of H-1B Visa Restrictions
Handa stated that the H-1B visa restrictions will not impact the company’s ability to hire skilled workers to help set up its manufacturing presence in the US. The company’s manufacturing process is more mechanical, technical, and highly automated, and it does not rely heavily on specialized skills.
Dependence on China
China has dominated the EV battery space, creating a level of dependence that India and other countries are uncomfortable with. Handa believes that India needs to partner with someone and be willing to learn really fast to reduce its dependence on China.
He suggested that companies can go with what’s established and then innovate and be ahead of them in five years. Epsilon Advanced Materials is based on what has already been proven in China, while also continuing to invest in new technologies and new materials.
Developing Domestic Capabilities
Handa emphasized the need for India to develop its domestic capabilities in critical minerals processing. He stated that the Indian government hasn’t given a clear signal that it wants to develop this industry.
He suggested that India needs access to capital, customers, and technology, which are available in the US. A clear bilateral understanding that India is a trusted partner will lead to funds going in this direction and the industry coming up.
Handa believes that de-risking from China is possible, but it will require an agreement at the Quad level between the US, India, Japan, and Australia. He suggested that customers should buy from China, but also buy 20-30% from India to reduce dependence on China.
Conclusion
In conclusion, Vikram Handa emphasized the need for India to reduce its dependence on China for critical minerals. Epsilon Advanced Materials is taking steps to develop its domestic capabilities in the sustainable battery space.
With the company’s investment in the US and its focus on innovation and technology, it is well-positioned to support the growth of the EV industry in India. As the Indian government continues to develop its policies and regulations, it is essential for companies like Epsilon Advanced Materials to be at the forefront of this development.
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