Andhra Government clears Rs 2,500 crore NSPSL cathode plant in Chittoor

Amaravati: The Andhra Pradesh government on Friday approved an investment of over Rs 2,500-crore by NSPSL Speciality Chemicals Pvt Ltd to establish a cathode material manufacturing facility in Chittoor district.

Spread across 105 acres in Gudupalle mandal, the project is a significant step towards localising one of the most critical components in the electronics and battery value chain.

Also Read: Andhra Pradesh to launch India’s first open-access quantum computer test beds at Amaravati Quantum Valley

"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," said an official press release.

Cathode materials are the core functional components of lithium-ion batteries, determining battery performance, energy density, lifecycle, and safety, it said.

They are widely used in electric vehicles (EVs), consumer electronics, electronics hardware and several other key sectors.

With the NSPSL facility, the southern state aims to achieve strategic relevance, catering to electronics manufacturing scale up and global energy transition towards electrification.

Also Read: Andhra Pradesh targets $2.4 trillion economy by 2047, eyes 15% CAGR with sectoral cluster push

Cathode materials account for a significant share of battery cost and technology differentiation and by building domestic capacity, India 'reduces dependence on imports', particularly from concentrated global supply chains, said the release.

This also enables the country to strengthen its position in EVs, renewables, and electronics manufacturing.

The NSPSL project is approved under the Andhra Pradesh Electronics Component Manufacturing Policy (4.0) 2025-30, which classified it under the supply chain of sub-assemblies and bare components, it added.