NPSPL to Set Up ₹2,550 Cr Cathode Material Project in Andhra Pradesh, Boosts India’s Electronics & Battery Supply Chain

In a strategic push to strengthen India’s electronics and advanced materials ecosystem, the Government of Andhra Pradesh has approved a ₹2,550 crore investment by NPSPL Speciality Chemicals Private Limited for setting up a cathode material manufacturing facility in Chittoor district.

The project will be developed across 105 acres in Gudupalle Mandal and is expected to play a critical role in localizing cathode materials—one of the most essential components in lithium-ion battery manufacturing.

Cathode materials are central to battery performance, influencing parameters such as energy density, lifecycle, and safety. These materials are widely used in high-growth sectors, including electric vehicles (EVs), consumer electronics such as smartphones and laptops, battery energy storage systems (BESS), and broader electronics hardware applications.

The development aligns with two major industrial shifts: the expansion of electronics manufacturing and the global transition toward electrification and clean energy. By building domestic capacity for cathode materials, India aims to reduce reliance on imports and strengthen its position in EVs, renewable energy, and electronics manufacturing.

The project has been approved under the Andhra Pradesh Electronics Component Manufacturing Policy (4.0) 2025–30 and is classified within the supply chain of sub-assemblies and bare components. It is among the first 10 projects sanctioned under the policy, positioning it to benefit from early-stage incentives.

To support the project’s execution, the state government has extended a customized incentive package, including capital subsidies, 100% electricity duty exemption for 10 years, power cost reimbursement, and classification as a high energy-intensive industry.

The facility is expected to generate around 400 direct jobs while supporting the development of a broader ecosystem encompassing battery manufacturing, EV supply chains, electronics hardware production, and ancillary chemical industries.

Industry observers note that as global demand for batteries accelerates, cathode materials are emerging as a key strategic segment within the value chain. With this investment, Andhra Pradesh is positioning itself as a critical hub in India’s evolving electronics and energy landscape.