Business · India Bureau
Nexon Geochem to invest ₹1,250 crore in Andhra rare-earth magnet facility
Advanced materials company Nexon Geochem will establish a rare-earth permanent magnet manufacturing plant in Andhra Pradesh as India seeks to strengthen its domestic critical minerals sector. The facility represents a significant step toward reducing the country's dependence on imported rare-earth magnets.
LSN India ·
Nexon Geochem has signed a memorandum of understanding with the Andhra Pradesh Economic Development Board to develop the manufacturing facility, with a total capital commitment of ₹1,250 crore spread across two phases. The first phase will require ₹750 crore in investment, while the second phase will account for ₹500 crore.
The plant will produce sintered neodymium-iron-boron (NdFeB) permanent magnets, essential components used across multiple high-growth sectors including electric vehicles, wind turbines, industrial automation systems and defence applications. These magnets are considered critical materials for India's transition toward renewable energy and advanced manufacturing.
The project aligns with India's broader strategy to develop a self-reliant supply chain for critical minerals and reduce its vulnerability to global supply chain disruptions. Currently, the country relies heavily on imported rare-earth permanent magnets despite possessing significant domestic rare-earth mineral reserves.
The establishment of this facility is expected to create a competitive domestic manufacturing base and strengthen India's position in the global rare-earth permanent magnet market, while simultaneously supporting the country's clean energy and defence sector objectives.