E3 Lithium Ltd. has signed a non-binding memorandum of understanding with Epsilon CAM Pvt. Ltd., a developer and manufacturer of lithium iron phosphate cathode active materials for lithium-ion batteries, to outline a potential long-term supply arrangement for battery-grade lithium carbonate from E3’s Clearwater Project in Alberta. The MOU became effective on September 1, 2026.
Under the terms outlined in the agreement, the two companies are considering a supply arrangement of up to 5,000 tonnes per year of battery-grade lithium carbonate over a five-year period. That volume would represent as much as 40% of E3 Lithium’s proposed Stage 1 production of 12,000 tonnes per year from the Clearwater Project. Final volumes and commercial terms would be determined as the companies move toward a definitive agreement.
Epsilon said the potential supply relationship supports its strategy to build a geographically diversified and more resilient battery materials supply chain. The company noted that its Gen III LFP product is already undergoing customer validation work globally and that it is developing a 30,000-tonne-per-year cathode materials facility in India, with Phase 1 targeted for completion by early 2028.
E3 Lithium said the MOU represents an important commercial step as it advances the Clearwater Project. The company said long-term offtake agreements are a key milestone in project development and that the potential supply arrangement could help connect Alberta brine resources to downstream battery materials production in India.
The companies described the MOU as consistent with industry-standard offtake discussions and said they expect negotiations to continue as E3 advances permitting, demonstration work, and its feasibility study. The Clearwater Project is one of E3 Lithium’s main development assets in Alberta, where the company is working toward future production of battery-grade lithium carbonate for the battery supply chain.
Source: Business Wire
