Naidupeta to Host India's First Rare Earth Magnet Plant
The project is being developed with the support of Japanese technology partners, including Masato Sagawa, who invented NdFeB magnets.
Tirupati:Naidupeta in Tirupati district is set to host India's first fully integrated rare earth magnet manufacturing plant, with an initial investment of Rs 1,250 crore.
The project, announced by critical minerals and advanced manufacturing company NAN GreenMet, would strengthen India's domestic production of a key component that’s now largely imported.
The facility will be established at the Naidupeta Industrial Park, where the company has secured land along with incentives from the state government.
Commercial production would begin in the first quarter of 2028.
The investment comes as the Centre steps up efforts to build a domestic rare earth magnet manufacturing ecosystem and reduce India's dependence on imports. The Union Cabinet recently approved a `7,280 crore scheme to promote the manufacture of sintered rare earth permanent magnets and encourage integrated production within the country.
In the first phase, the plant will have a saleable production capacity of 1,200 tonnes per annum. The company plans to expand the facility in phases to reach a total capacity of 10,000 tonnes per annum. It expects the project to generate annual revenues of Rs 1,200 crore to Rs 1,500 crore.
Rare earth magnets made from neodymium, iron and boron are widely used in electric vehicle motors, wind turbines, defence equipment, robotics, semiconductors and advanced electronic products.
At present, India imports nearly 95 per cent of its rare earth magnets from China, making domestic production important for ensuring a stable supply.
The project is being developed with the support of Japanese technology partners, including Masato Sagawa, who invented NdFeB magnets.
The company has also secured long-term supply arrangements for critical rare earth materials from a major producer in Australia.
NAN GreenMet said it has signed offtake agreements with leading automobile manufacturers and Tier 1 automotive suppliers in India, providing an assured market for the magnets to be produced at the facility.
The Naidupeta plant will bring together the complete manufacturing process under one roof, from processing rare earth oxides and producing metals and alloys to manufacturing sintered magnets through automated systems.
The facility will also include a closed loop recycling system to recover and reuse materials, improving resource efficiency..
