Andhra Pradesh Clears ₹2,550 Crore Cathode Material Plant in Chittoor to Boost EV Ecosystem

Andhra Pradesh has taken a major step towards strengthening India’s advanced materials and electronics ecosystem by approving a ₹2,550 crore investment for a cathode material manufacturing facility in Chittoor district. The project will be developed by NPSPL Speciality Chemicals Private Limited across 105 acres in Gudupalle Mandal.

This development is strategically significant as cathode materials are one of the most critical components in lithium-ion battery production. These materials directly impact battery efficiency, energy density, safety, and lifecycle, making them essential for high-growth sectors such as electric vehicles, consumer electronics, and energy storage systems.

With global demand for batteries rising rapidly, India is actively working to reduce its dependence on imports and build domestic capabilities across the value chain. The Chittoor project aligns with this vision by localising cathode material production and strengthening supply chains for EVs and renewable energy applications.

The project has been approved under the Andhra Pradesh Electronics Component Manufacturing Policy 4.0 for the period 2025 to 2030. It is among the first set of projects to receive approval under this policy, allowing it to benefit from early-stage incentives offered by the state government.

To ensure smooth execution, Andhra Pradesh has extended a customised incentive package that includes capital subsidies, full electricity duty exemption for ten years, and power cost reimbursement. The project has also been classified as a high energy-intensive industry, enabling additional operational support.

Apart from boosting manufacturing capacity, the facility is expected to generate around 400 direct jobs while supporting a broader ecosystem of ancillary industries, including battery manufacturing, EV supply chains, and specialty chemicals.

Industry experts believe that such investments will play a key role in positioning Andhra Pradesh as a major hub for electronics and energy storage manufacturing in India. As the country accelerates its transition towards clean energy and electrification, projects like this are expected to drive long-term industrial growth and technological advancement.