VIJAYAWADA: In a strategic move to strengthen India’s electronics and advanced materials ecosystem, the Government of Andhra Pradesh has approved a Rs 2,550 crore investment by NPSPL Speciality Chemicals Private Limited to establish a cathode material manufacturing facility in Chittoor district.
The project, spread across 105 acres in Gudupalle mandal of Chittoor district, is a significant step towards localising one of the most critical components in the electronics and battery value chain.
Cathode materials are the core functional component of lithium-ion batteries, determining battery performance, energy density, lifecycle, and safety. They are used across a wide spectrum of high-growth sectors. They include electric vehicles, consumer electronics, energy storage systems and electronics hardware. In essence, no modern battery-and therefore no modern electronics ecosystem-exists without cathode materials.
The project places AP at the heart of two converging mega trends of electronics manufacturing scale-up and global energy transition towards electrification.
Cathode materials account for a significant share of battery cost. 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.
Incentive package for speedy execution of project
Approved under the Andhra Pradesh Electronics Component Manufacturing Policy (4.0) 2025-30, the project 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.
To accelerate execution, the State has extended a customised incentive package, including capital subsidies under the policy, 100% electricity duty exemption for 10 years, power cost reimbursement and high energy-intensive industry classification.
This targeted support is aimed at making Andhra Pradesh globally competitive in high-value manufacturing. The project is expected to generate around 400 direct jobs while catalysing a broader ecosystem spanning battery manufacturing, EV supply chains, electronics hardware production and ancillary chemical and materials industries.
More importantly, it lays the groundwork for India’s upstream integration in battery and electronics manufacturing, an area critical for long-term technological and economic sovereignty.
As global supply chains realign and demand for batteries surges, cathode materials have emerged as a strategic choke point. With this project, AP is not just attracting investment, it is plugging India into the most critical layer of the future electronics & energy economy.