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Andhra Pradesh Approves INR 2,550 Crore Cathode Material Plant in Chittoor
Apr 20, 2026
The state government has cleared a major investment by NPSPL Speciality Chemicals to establish a key battery materials facility, strengthening India’s domestic electronics and EV supply chain.
The government of Andhra Pradesh has approved an investment of Rs 2,550 crore by NPSPL Speciality Chemicals to set up a cathode material manufacturing unit in Chittoor district. The facility will be developed over 105 acres in Gudupalle Mandal and is expected to play a crucial role in localizing key components of the battery and electronics value chain.
Cathode materials are essential to battery performance, influencing energy density, efficiency, and lifespan. They are widely used in electric vehicles, consumer electronics such as smartphones and laptops, and battery energy storage systems supporting renewable energy integration.
By building domestic manufacturing capacity, the project aims to reduce India’s reliance on imports and strengthen its position across sectors like electric mobility, clean energy, and electronics production. Cathode materials also account for a significant portion of battery costs, making this investment strategically important.
The project has been approved under the Andhra Pradesh Electronics Component Manufacturing Policy (4.0) 2025–30 and falls within the sub-assemblies and bare components segment, underlining its importance in the broader electronics ecosystem. It is among the early projects sanctioned under this policy, enabling it to benefit from initial incentives.
To support the development, the state has offered a range of incentives, including capital subsidies, full exemption from electricity duty for 10 years, reimbursement of power costs, and classification as a high energy-intensive industry.
The facility is expected to generate around 400 direct jobs while also boosting ancillary industries linked to battery manufacturing, electric vehicle supply chains, and electronics production.