NPSPL to Invest Rs 2,550 Crore in Andhra Pradesh Cathode Unit, Boosting EV and Electronics Supply Chain
Apart from an estimated 400 direct jobs, the project would catalyse a wider industrial ecosystem encompassing battery manufacturing, EV supply chains, electronics hardware production and ancillary chemical industries.
Vijayawada: The Andhra Pradesh government has approved a Rs 2,550 crore investment by NPSPL Speciality Chemicals Private Ltd to set up a state-of-the-art cathode material manufacturing facility in Chittoor district.
The facility would strengthen India’s electronics and advanced materials ecosystem.
The project, to be developed across 105 acres in Gudupalle mandal, marks a significant step towards localising one of the most critical components in the lithium-ion battery value chain. Cathode materials form the backbone of modern batteries, directly influencing energy density, performance, lifecycle and safety.
These materials are indispensable across fast-growing sectors such as electric vehicles (EVs), consumer electronics including smartphones and laptops, and battery energy storage systems used for renewable energy integration. Industry experts note that without cathode materials, neither modern electronics nor clean energy systems can function efficiently.
The investment places AP at the intersection of two transformative global trends — rapid expansion in electronics manufacturing and the accelerating transition towards electrification and clean energy. With cathode materials accounting for a substantial share of battery costs and technological differentiation, domestic production is expected to reduce India’s reliance on imports and strengthen supply chain resilience.
The project has been approved under the AP electronics component manufacturing Policy (4.0) 2025–30 and is among the first 10 projects to be cleared under the framework, enabling it to benefit from early-mover incentives. It falls under the category of sub-assemblies and bare components, underscoring its foundational role in the broader electronics manufacturing ecosystem.
To fast-track implementation, the state government has extended a customised package of incentives, including capital subsidies, 100 per cent exemption on electricity duty for 10 years, reimbursement of power costs, and classification as a high energy-intensive industry.
Apart from an estimated 400 direct jobs, the project would catalyse a wider industrial ecosystem encompassing battery manufacturing, EV supply chains, electronics hardware production and ancillary chemical industries.
Officials said the initiative would help position AP as a hub for high-value manufacturing while advancing India’s ambitions of achieving self-reliance in critical materials. As global demand for batteries surges and supply chains undergo realignment, the project is poised to anchor India firmly in the future electronics and clean energy economy.
