India is set to get a major boost in its rare earth manufacturing capabilities as Japanese materials company Proterial plans to establish a permanent magnet production facility in Andhra Pradesh. The project is expected to attract an investment of ₹2,250 crore and will play an important role in reducing India’s dependence on Chinese supplies of rare earth magnets.
The facility will come up at Achutapuram in Anakapalli district, as per reports. The proposal received approval from the State Investment Promotion Committee during its meeting last week, according to people familiar with the development.
Focus on critical magnet production
The upcoming plant will produce 1.2 kilo tonnes per annum (ktpa) of sintered neodymium-iron-boron (NdFeB) permanent magnets. These magnets are considered essential for several industries, including electric vehicles, wind energy, industrial motors, electronics, aerospace and defence.
NdFeB magnets are among the most important components used in advanced technologies, making local production a strategic priority for India.
Timely investment amid India’s self-reliance push
The investment comes as India steps up efforts to strengthen its domestic rare earth value chain. The country has been looking to cut its reliance on imported rare earth magnets while building local manufacturing capacity in sectors considered important for long-term economic and technological growth.
In line with this objective, the Central government recently approved a dedicated incentive programme aimed at encouraging domestic production of sintered rare earth permanent magnets. The move highlights the growing national focus on developing this industry.
Global magnet technology leader
Proterial, previously known as Hitachi Metals, is widely recognized as one of the pioneers of NdFeB magnet technology. The company remains one of the leading global suppliers of advanced magnetic materials and has operations across North America, Europe, China and other parts of Asia.
Last year, the Japanese company reported consolidated revenue of around ₹45,000 crore. Its decision to invest in India is expected to support the country’s efforts to become a key player in the global rare earth supply chain.
