Japan company to set up rare earths magnet unit in Andhra Pradesh

Japan company to set up rare earths magnet unit in Andhra Pradesh

Proterial, a global leader in advanced materials, will set up a rare earth permanent magnet manufacturing facility in Andhra Pradesh with an investment of ₹2,250 crore, marking a key step toward building India’s local rare earth value chain and reducing its reliance on Chinese sources, said people with knowledge of the matter.

The project, to be located at Achutapuram in Anakapalli district, will manufacture 1.2 kilo tonnes per annum (ktpa) of sintered neodymium-iron-boron (NdFeB) permanent magnets, among the most critical components used in electric vehicles, wind turbines, industrial motors, electronics, aerospace and defence systems. The State Investment Promotion Committee approved the project at its meeting last week.

The proposed investment comes at a time when India is actively seeking to reduce dependence on imported rare earth magnets and build indigenous manufacturing capabilities in strategic sectors.

The Centre recently approved a dedicated incentive programme to encourage domestic production of sintered rare earth permanent magnets, underscoring the national importance of the sector.

The company didn’t respond to queries.

Proterial, formerly Hitachi Metals, is regarded as one of the global pioneers of NdFeB magnet technology and remains a leading supplier of advanced magnetic materials worldwide. The Japanese company posted consolidated revenue of ₹45,000 crore last year and operates in North America, Europe, China and Asia.

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