Epsilon Carbon inks USD 20 million pact with Aluminium Bahrain for coal tar pitch supply

Indian company Epsilon Carbon, a leader in coal tar pitch, has announced a USD 20 million memorandum of understanding with Aluminium Bahrain (Alba). This agreement focuses on the long-term supply of liquid coal tar pitch to the Middle East region. The company intends to bolster its coal tar pitch (CTP) production capacity to 300,000 tonnes by next year from its current 180,000 tonnes to meet escalating demand.

The Middle East region, comprising smelters in Bahrain, Qatar, and Saudi Arabia, consumes approximately 250,000 tonnes of pitch annually, largely imported from East Asia. Epsilon Carbon plans to establish a local melting facility in Bahrain to process pitch transported from India, enhancing regional supply chain resilience. Beyond CTP, Epsilon Carbon is expanding its battery material operations internationally, including in the United States, Finland, and Germany. The company also has significant investment plans in India, with Rs 10,000 crore earmarked for Odisha and Rs 500 crore for Karnataka. Driven by its rapid growth and global expansion, Epsilon Carbon is targeting an Initial Public Offering (IPO) by the end of 2027.

Impact: This strategic partnership and capacity expansion can lead to increased revenue and profitability for Epsilon Carbon, potentially benefiting Indian investors. The expansion into the Middle East strengthens its global footprint, and the IPO plans offer future investment opportunities in the Indian stock market. Impact Rating: 7/10

Heading: Difficult Terms Coal Tar Pitch (CTP): A black, viscous byproduct of coal tar distillation, essential for manufacturing carbon anodes and cathodes used in aluminium smelting and for components in electric vehicle (EV) batteries. Memorandum of Understanding (MOU): A preliminary, non-binding agreement that outlines the mutual understanding and intentions of two or more parties before a formal contract is drafted. Aluminium Smelting: The industrial process of extracting aluminium from its oxide (alumina) using electrolysis, requiring substantial energy and materials like carbon anodes. EV Batteries: Batteries that power electric vehicles, storing electrical energy for propulsion. Supply Chain Resilience: The ability of a supply chain to anticipate, withstand, adapt to, and recover from disruptions, ensuring continuity of operations.