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Andhra Pradesh Clears INR 2,550 Cr Cathode Material Manufacturing Project by NPSPL

Andhra Pradesh government has approved an INR 2,550 crore investment by NPSPL Speciality Chemicals to set up a cathode material manufacturing facility in Chittoor district, under the Andhra Pradesh Electronics Component Manufacturing Policy (4.0) 2025-30.

April 20, 2026. By Mrinmoy Dey

The Government of Andhra Pradesh has approved an INR 2,550 crore investment by NPSPL Speciality Chemicals to set up a cathode material manufacturing facility in Chittoor district. The project, spread across 105 acres in Gudupalle Mandal, is a significant step towards localising one of the most critical components in the electronics and battery value chain.

Cathode materials are a critical part of batteries, as they determine performance, energy density, and lifespan. They are widely used in electric vehicles, consumer electronics such as smartphones and laptops, and battery energy storage systems for renewable energy.

Cathode materials account for a significant share of battery cost and technology differentiation. By building domestic capacity, India reduces dependence on imports – particularly from concentrated global supply chains – and strengthens its position in EVs, renewables, and electronics manufacturing.

The project is approved under the Andhra Pradesh Electronics Component Manufacturing Policy (4.0) 2025–30 and is classified under the supply chain of sub-assemblies and bare components – highlighting its foundational role in the electronics ecosystem. It is also among the first 10 projects under the policy, securing early-mover advantages and incentives.

The state government has offered incentives, including capital subsidies, 100 percent exemption on electricity duty for 10 years, power cost reimbursement, and classification as a high energy-intensive industry to support the project.

The facility is expected to create around 400 direct jobs and support related industries such as battery manufacturing, EV supply chains, and electronics production. It also marks a step towards strengthening India’s capabilities in battery materials and electronics manufacturing.

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Energy Storage

NPSPL Speciality Chemicals

Cathode material manufacturing plant

Cathode plant in Andhra Pradesh

AP Electronics Component Manufacturing Policy