Advanced materials company Nexon Geochem on Wednesday said that a rare-earth permanent magnet facility will be set up in Andhra Pradesh with an investment of ₹1,250 crore.
The development comes at a time when India is seeking to build a domestic ecosystem for critical minerals and reduce its dependence on imported rare-earth permanent magnets.
The facility to be set up in partnership with the Andhra Pradesh Economic Development Board will produce sintered neodymium-iron-boron (NdFeB) permanent magnets, which are critical components for electric vehicles, wind turbines, industrial automation and defence applications, the company said in a statement.
As the driving force and primary investor behind this project, Nexon Geochem is committing a total investment of ₹1,250 crore across two strategic phases–₹750 crore dedicated to the first phase and ₹500 crore allocated for the second phase.
“Nexon Geochem…today announced the signing of a landmark Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board to establish an integrated sintered NdFeB rare-earth permanent magnet manufacturing facility in Thondangi, Kakinada district,” the statement said.
The facility is engineered to achieve a massive annual production capacity of 600 tonnes of high-grade permanent magnets, heavily serving the rapidly growing electric vehicle (EV), renewable energy, and advanced manufacturing sectors.
” Our vision is to establish an integrated NdFeB magnet manufacturing ecosystem that strengthens supply-chain security, reduces import dependence, and supports India’s ambitions in electric mobility, renewable energy, and advanced manufacturing,” Praveen Kumar Choudhary, Director, Nexon Geochem Pvt Ltd said.
The Hyderabad-headquartered company specialises in high-tech material manufacturing and advanced industrial engineering. The company focuses on localisation and import substitution, developing critical, high-value components that safeguard supply chain integrity for India’s defence, green energy, and automotive sectors.
