Japan firm to establish rare earth magnet facility in Andhra Pradesh

Japan’s Proterial, a leading global advanced materials manufacturer, is set to establish a rare earth permanent magnet production plant in Andhra Pradesh with an investment of ₹2,250 crore. The move represents a significant push toward strengthening India’s domestic rare earth value chain and lowering dependence on Chinese imports, according to sources familiar with the development.

The facility will be set up in Achutapuram, located in the Anakapalli district, and will have an annual production capacity of 1.2 kilo tonnes (ktpa) of sintered neodymium-iron-boron (NdFeB) permanent magnets. These magnets are essential components in electric vehicles, wind turbines, industrial machinery, electronics, aerospace, and defence applications. The State Investment Promotion Committee cleared the proposal during its meeting last week.

The planned investment aligns with India’s broader efforts to cut reliance on imported rare earth magnets and strengthen domestic manufacturing in critical industries.

Recently, the central government approved a targeted incentive scheme aimed at boosting local production of sintered rare earth permanent magnets, highlighting the strategic importance of the sector.

Proterial, previously known as Hitachi Metals, is recognized as a pioneer in NdFeB magnet technology and continues to rank among the world’s top suppliers of advanced magnetic materials. The company reported consolidated revenues of ₹45,000 crore last year and maintains operations across North America, Europe, China, and other parts of Asia.