Key facts
- Proterial, a Japanese company, will invest ₹2,250 crore ($270 million) in a rare earth magnet plant in Andhra Pradesh.
- The facility will be located in Achutapuram, Anakapalli district.
- It will manufacture 1.2 kilotonnes per annum of sintered neodymium-iron-boron (NdFeB) permanent magnets.
- These magnets are critical components for electric vehicles, wind turbines, and other advanced technologies.
- The project aligns with India's goal to reduce reliance on Chinese sources for rare earth magnets.
Japan's Proterial, a global leader in advanced materials and a pioneer in NdFeB magnet technology, is set to establish a rare earth permanent magnet manufacturing facility in Andhra Pradesh, India. The investment of ₹2,250 crore ($270 million) marks a significant step towards building India's local rare earth value chain and reducing its dependence on China.
The facility, to be located in Achutapuram in the Anakapalli district, will have an annual production capacity of 1.2 kilotonnes of sintered neodymium-iron-boron (NdFeB) permanent magnets. These magnets are essential components for electric vehicles, wind turbines, industrial motors, electronics, and defense systems.
The project's approval by the State Investment Promotion Committee comes at a time when India is actively seeking to enhance its indigenous manufacturing capabilities in strategic sectors and decrease reliance on imported rare earth magnets. The Indian government has recently approved an incentive program to promote domestic production of these critical magnets.