The Government of Andhra Pradesh has approved a ₹25.5 (~$274.1 million) investment by Kolkata-based NPSPL Specialty Chemicals to establish a cathode material manufacturing facility in the state’s Chittoor district.

The facility will be spread across 105 acres in Gudupalle Mandal in Chittoor.

Cathode materials are a key component of lithium-ion batteries and directly influence battery performance, energy density, lifecycle, and safety. They are widely used across several high-growth sectors, including electric vehicles such as passenger vehicles, two-wheelers, and commercial fleets, and energy storage systems that support renewable energy integration, and electronics hardware requiring backup and uninterrupted power.

The project has been approved under the Andhra Pradesh Electronics Component Manufacturing Policy (4.0) for 2025 to 2030 and is among the first 10 projects cleared under the policy, enabling it to access early-stage incentives. The state government has offered a customized incentive package, including capital subsidies, a 100% exemption from electricity duty for 10 years, reimbursement of power costs, and classification as a high-energy-intensive industry.

Andhra Pradesh has extended a customized incentive package to support the establishment of the manufacturing facility. This includes capital subsidies, a 100% electricity duty exemption for 10 years, power cost reimbursement, and a high-energy-intensity industry classification.

In February, Waaree Energies announced plans to set up a 16 GWh integrated lithium-ion battery manufacturing plant in Rambili, Anakapalli, Andhra Pradesh, with an investment of ₹81.75 billion (~$901.26 million). The integrated greenfield lithium-ion manufacturing plant will cover the entire battery value chain, including cell manufacturing, battery packs, and large-scale battery energy storage systems. The project has received in-principle approval from the Andhra Pradesh State Investment Promotion Board.

India added nearly 547 MWh of battery energy storage capacity in 2025, around 26% year-over-year increase from over 433 MWh, according to the newly released 2H & Annual 2025 India’s Energy Storage Landscape Report by Mercom India Research. India’s cumulative installed battery energy storage capacity reached almost 1,082 MWh as of December 2025.