E3 Lithium and Epsilon CAM Sign MOU for Battery-Grade Lithium Carbonate Supply

E3 Lithium and Epsilon CAM Sign MOU for Supply of Battery-Grade Lithium Carbonate, Strengthening Battery Materials Supply Chain

Non-binding understanding contemplates multi-year supply of battery-grade lithium carbonate to support Epsilon CAM’s growing cathode materials business

CALGARY, Alberta & MUMBAI, India–(BUSINESS WIRE)–E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3”, “E3 Lithium” or the “Company,” a leader in Canadian lithium development, has entered into a non-binding Memorandum of Understanding (the “MOU”) with Epsilon CAM Pvt. Ltd. (“Epsilon”), a developer and manufacturer of Lithium Iron Phosphate (“LFP”) based Cathode Active Materials (“CAM”) for lithium-ion batteries. The MOU, effective September 1, 2026, outlines the framework for potential long-term supply of battery-grade lithium carbonate from E3’s Clearwater Project.

The MOU contemplates the potential supply of maximum up to 5,000 tonnes per year of battery-grade lithium carbonate over a five-year term, representing up to 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 established as the parties progress towards a definitive agreement.

This understanding strengthens Epsilon’s strategy to build a geographically diversified and resilient battery materials supply chain. Epsilon’s Gen III LFP is already progressing with global customer validations, while the company is building a 30,000 tonnes per year cathode materials facility with Phase 1 completion by early 2028. The potential supply of battery-grade lithium carbonate from E3 Lithium’s Clearwater Project would add a new source of this critical raw material to the supply chain.

Chris Doornbos, CEO & Chair of E3 Lithium, said:

Securing long-term offtake contracts is a critical commercial milestone required to advance the Clearwater Project,

“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.”

The terms of the MOU are likely to follow industry standards for offtake and follow a predictable path towards a definitive agreement seen within the industry. Generally, as the Company continues to execute on permitting, advancing Demonstration, and moving closer to completing its Feasibility Study, E3 expects agreements to finalize as the Project advances toward FID.

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E3 Lithium and Epsilon CAM Sign MOU for Supply of Battery-Grade Lithium Carbonate, Strengthening Battery Materials Supply Chain, source