Epsilon Advanced Materials has secured an air permit from the North Carolina Department of Environmental Quality for its proposed graphite manufacturing plant in Brunswick County.

The permit marks “a significant milestone” in the company’s “journey to build a secure and sustainable battery supply chain in the United States,” a recent news release stated. It also puts the India-based company on track to break ground on the proposed facility this year.

In 2023, Epsilon officials announced plans to build a 1.5-million-square-foot facility in Brunswick County’s Mid-Atlantic Industrial Rail Park, which will make graphite for the lithium-ion batteries used in electric vehicles. Officials have said they expected the new plant to create 500 jobs with an average salary of more than $52,000. 

When the project was initially announced, company officials had said they expected to break ground on the facility in 2024, begin operations by 2026 and reach full capacity by 2031. Epsilon officials told the Business Journal earlier this year that the project faced delays in securing needed clearance.

Epsilon announced earlier this year that it had secured $115 million in federal tax credits to help cover the up-front costs of developing the facility.

In the latest release, company officials called the air permit a “critical approval” that demonstrates Epsilon’s regulatory compliance and environmental stewardship. It also highlights a renewed federal focus on “accelerating America’s critical minerals sector,” according to the release.

“Our North Carolina plant will produce high-performance synthetic graphite anode material, vital for electric vehicles and clean energy technologies, with an annual production capacity of 30,000 tons by 2027,” the release stated. “With this project, Epsilon is investing in a cleaner, low-carbon manufacturing future, creating jobs, supporting energy security and reinforcing the U.S.’s leadership in battery innovation.”