The Government of Andhra Pradesh has approved an investment of ₹2,550 crore by NPSPL Speciality Chemicals Private Limited to establish a cathode material manufacturing facility in Chittoor district.
The project will be developed over 105 acres in Gudupalle Mandal and is expected to play a key role in localizing cathode materials, a critical component in lithium-ion battery production. Cathode materials directly influence battery performance, including energy density, lifecycle, and safety, and are widely used across electric vehicles, consumer electronics, battery energy storage systems, and other electronic applications.
The initiative aligns with India’s broader push to strengthen domestic manufacturing capabilities amid growing demand driven by electrification and clean energy transitions. By building local capacity, the project aims to reduce import dependency and enhance India’s competitiveness in EVs, renewable energy, and electronics manufacturing.
The facility has been approved under the Andhra Pradesh Electronics Component Manufacturing Policy (4.0) 2025–30 and is among the first set of projects sanctioned under the policy. As part of the approval, the state government has extended a customized incentive package, including capital subsidies, 100% electricity duty exemption for 10 years, and power cost reimbursements.
Once operational, the project is expected to generate around 400 direct jobs while supporting the development of a broader ecosystem spanning battery manufacturing, EV supply chains, and ancillary chemical industries.
Industry experts view the investment as a strategic step toward positioning Andhra Pradesh as a key hub in India’s evolving electronics and energy value chain, particularly as global demand for battery materials continues to rise.
