This collaboration is a major step toward reducing U.S. reliance on foreign sources for essential battery components and fostering a resilient, future-ready energy ecosystem.
In a significant move to strengthen the domestic electric vehicle (EV) and energy storage system (ESS) supply chain, Epsilon Advanced Materials Inc. (EAM) has forged a strategic partnership with Phillips 66. The agreement in principle, announced on September 24, secures the supply of critical raw materials for EAM's upcoming 30,000-ton graphite active anode material facility in North Carolina.
The core of the partnership involves Phillips 66 supplying Green and Calcined Needle Coke from its Lake Charles, Louisiana, refinery to EAM. As one of the world's leading producers of specialty cokes, Phillips 66 provides a crucial feedstock for manufacturing synthetic graphite anodes, which are a core component of lithium-ion batteries. This consistent and reliable access to high-quality materials will enable EAM to ramp up production at its new facility, which is poised to become a key player in the U.S. battery materials landscape.
"This collaboration is a major step in building a secure and sustainable battery materials supply chain for the US," stated Vikram Handa, Managing Director of Epsilon Advanced Materials. "Phillips 66’s expertise in energy and materials, combined with EAM’s capacity and global presence, will ensure reliable, scalable, and sustainable graphite anode production to power the EV and ESS industries worldwide." The agreement reinforces efforts to build a competitive and resilient supply chain for clean energy technologies across multiple regions.
The North Carolina facility, located in Brunswick County, has completed all permitting milestones and is on track to begin operations in 2027. It will initially produce 30,000 tons of graphite active anode material annually, with plans to expand to 60,000 tons by 2030. At full operational capacity, the plant is projected to supply enough material for approximately one million electric vehicles each year, directly supporting U.S. battery manufacturers and automotive original equipment manufacturers (OEMs).
This partnership arrives at a crucial time as the U.S. government and industry leaders prioritize building a robust domestic supply chain to meet the rapidly accelerating demand for EVs and energy storage. By bringing together Phillips 66's operational expertise and EAM's advanced manufacturing capabilities, the agreement not only addresses supply chain vulnerabilities but also promotes economic growth and job creation in the United States. It is a clear example of how industry collaboration can drive the clean energy transition and create a more sustainable and secure energy future.
