India-based Epsilon Group, a leading battery materials manufacturer, signed an agreement to acquire Johnson Matthey’s lithium iron phosphate (LFP) cathode active material technology center in Moosburg, Germany. Financial details of the acquisition remain undisclosed.

The facility features best-in-class technical capabilities and a workforce with expertise in LFP chemistry, comprehensive product and process development capabilities, and a versatile customer qualification plant designed to verify new materials for large-scale production.

Epsilon said that the acquisition allows it to go to market with a proven high performance cathode active material produced at scale.

The Moosburg research and development (R&D) center’s location offers Epsilon an advantage to tap into the European battery material’s talent pool and to cater to its global clientele. By leveraging the existing infrastructure and capabilities of the Moosburg facility, Epsilon aims to reduce the technology development and scale-up timeframe significantly.

This acquisition serves as a catalyst for Epsilon’s plans to cater to 100 GWH of demand eventually. In alignment with its vision, Epsilon has previously announced a $1.1-billion investment in the establishment of a 100,000-ton cathode battery materials manufacturing facility in Bellari, Karnataka, India, with subsequent expansions in Europe. Epsilon also has plans for a $650-million manufacturing facility in the US.

The global electric vehicle market, valued at $380 billion in 2022, is projected to soar to $1.5 trillion by 2030, according to Fortune Business Insights. Cathode materials are pivotal to this growth trajectory. Benchmark’s report further underscores the urgency, indicating a need for $40 billion in cathode materials production investments to bridge the gap between the current supply and anticipated demand by 2030.