Andhra Pradesh Approves ₹2,550 Crore Investment By NPSPL For Cathode Material Plant In Chittoor

Amaravati: 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 to set up a cathode material manufacturing facility in Chittoor district.

The plant, to be developed over 105 acres in Gudupalle Mandal, will produce a key component used in lithium-ion batteries that power electric vehicles, consumer electronics and energy storage systems. Cathode materials are critical to battery performance, influencing energy density, safety and lifecycle, and are considered a strategic bottleneck in global battery supply chains.

The project is aimed at strengthening India's domestic battery and electronics manufacturing ecosystem as the country pushes to reduce import dependence in critical materials. Approved under Andhra Pradesh's Electronics Component Manufacturing Policy (2025-30), the investment is among the first batch of projects cleared under the scheme and will receive incentives, including electricity duty exemptions and power cost support, according to an official order of the state government.

The project is expected to generate about 400 direct jobs and help build a wider supply chain spanning EVs, battery manufacturing and electronics hardware. "The government of Andhra Pradesh is actively pursuing strategic initiatives to position the state as a premier destination for investments in electronics components manufacturing," it said.

"Recognizing that electronics components constitute a critical segment of the electronics value chain, the government is focused on fostering an ecosystem that supports innovation, scalability, and global competitiveness in this sector." The project has been allocated 105 acres of land along with incentives such as 60 per cent of capital incentive, 100 per cent electricity duty exemption for 10 years, and power cost reimbursement of Rs 2 per unit for 10 years.

The project, spread across 105 acres in Gudupalle Mandal, is a significant step towards localizing one of the most critical components in the electronics and battery value chain.

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