Advanced materials company Nexon Geochem has signed a landmark Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board to establish a ₹1,250 crore rare-earth permanent magnet facility in Andhra Pradesh. According to the company's statement, this strategic partnership will establish an integrated sintered NdFeB rare-earth permanent magnet manufacturing facility in Thondangi, Kakinada district. The facility will be set up in partnership with the Andhra Pradesh Economic Development Board and represents a significant step toward building India's domestic ecosystem for critical minerals and reducing dependence on imported rare-earth permanent magnets.
The facility will produce sintered neodymium-iron-boron (NdFeB) permanent magnets, which are critical components for electric vehicles, wind turbines, industrial automation and defence applications. As reported by Business Standard, the facility is engineered to achieve a massive annual production capacity of 600 tonnes of high-grade permanent magnets. These magnets serve the rapidly growing electric vehicle (EV), renewable energy, and advanced manufacturing sectors, addressing India's strategic need for domestic production capabilities. The magnets will heavily serve the rapidly growing electric vehicle (EV), renewable energy, and advanced manufacturing sectors, targeting demand from these critical industries.
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. According to the company's statement, ₹750 crore is dedicated to the first phase and ₹500 crore is allocated for the second phase of the development. This phased approach ensures systematic growth and operational readiness while maintaining the project's strategic timeline and financial viability for the critical materials manufacturing facility.
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. According to Business Standard, the facility is designed to strengthen supply-chain security, reduce import dependence, and support India's ambitions in electric mobility, renewable energy, and advanced manufacturing. Nexon Geochem specialises in high-tech material manufacturing and advanced industrial engineering, focusing on localisation and import substitution for India's defence, green energy, and automotive sectors. The project aligns with India's broader strategic objectives in critical materials and manufacturing independence.
Praveen Kumar Choudhary, Director, Nexon Geochem Pvt Ltd, emphasised the company's strategic vision, stating that the goal is to establish an integrated NdFeB magnet manufacturing ecosystem. As reported by Business Standard, this initiative supports India's ambitions in electric mobility, renewable energy, and advanced manufacturing while safeguarding supply chain integrity for critical sectors. The Hyderabad-headquartered company's focus on localisation and import substitution aligns with India's broader strategic objectives in critical materials and manufacturing independence. The MoU signing represents a concrete step toward achieving India's self-reliance goals in critical materials manufacturing.
