Japan’s Proterial, a global leader in advanced materials, is set to establish a rare earth permanent magnet manufacturing facility in Andhra Pradesh. The investment, valued at ₹2,250 crore, represents a significant milestone in India’s efforts to build a local rare earth value chain and reduce dependence on Chinese sources.

The facility will be located at Achutapuram in Anakapalli district. It is designed to produce 1.2 kilo tonnes per annum of sintered neodymium‑iron‑boron (NdFeB) permanent magnets. These magnets are 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. This approval underscores the strategic importance of the initiative, which aligns with India’s broader push to strengthen indigenous manufacturing capabilities in sectors vital to national security and economic growth.

The timing of the investment is particularly significant. India has been actively seeking to reduce reliance on imported rare earth magnets, especially given the global supply chain vulnerabilities exposed by China’s dominance in the sector. By hosting a Japanese facility, India is diversifying its sources while simultaneously building domestic expertise.

The central government has recently sanctioned a dedicated incentive programme to encourage domestic production of sintered rare earth permanent magnets. This policy highlights the national importance of the sector and provides a supportive framework for projects such as Proterial’s.

The magnets to be produced in Andhra Pradesh will play a crucial role in India’s electric mobility mission, renewable energy expansion, and defence modernisation.

With demand for NdFeB magnets expected to rise sharply in the coming decade, the facility will help India secure critical supply chains while fostering technology transfer and industrial collaboration.

This development also reflects the strengthening of Indo‑Japanese industrial cooperation. Japan’s expertise in advanced materials and India’s growing market potential create a mutually beneficial partnership. The project is expected to generate employment, enhance local skills, and contribute to Andhra Pradesh’s industrial growth.

Agencies