The Government of Andhra Pradesh has approved an investment of ₹2,550 crore by NSPSL Speciality Chemicals Pvt Ltd to establish a cathode material manufacturing facility in Chittoor district, marking a significant step toward strengthening India’s electric vehicle (EV) and electronics supply chain.

The project will be developed over 105 acres in Gudupalle mandal and is aimed at localising the production of key lithium-ion battery components. Cathode materials are among the most critical elements in lithium-ion batteries, directly influencing performance, energy density, lifecycle, and safety. These batteries are widely used across electric vehicles, consumer electronics, and advanced electronic hardware.

By building domestic manufacturing capacity for cathode materials, Andhra Pradesh aims to reduce India’s reliance on imports and enhance supply chain resilience. The initiative is expected to play a crucial role in supporting the country’s broader transition toward electrification and clean energy adoption.

The project has been approved under the Andhra Pradesh Electronics Component Manufacturing Policy (ECMP 4.0) for 2025–30, where it falls under the category of sub-assemblies and bare components. The policy framework is designed to attract investments in high-value electronics manufacturing and strengthen the state’s industrial ecosystem.

According to the state government, the investment will significantly enhance India’s strategic capabilities in battery manufacturing, while also supporting the scale-up of electronics production. It is expected to contribute to the growth of key sectors such as electric mobility, renewable energy, and advanced electronics manufacturing.

The development underscores Andhra Pradesh’s growing role as a hub for next-generation manufacturing and aligns with national efforts to build a robust domestic value chain for clean energy technologies.