Anakapalli, Andhra Pradesh, June 16, 2026:
Japanese materials giant Proterial is set to establish a rare earth magnet manufacturing facility in Andhra Pradesh with an investment of ₹2,250 crore, marking a major boost for India’s advanced manufacturing and clean energy sectors.
The proposed facility will be located at Achutapuram SEZ in Anakapalli district and is expected to produce 1.2 kilotonnes per annum (KTPA) of neodymium-iron-boron (NdFeB) permanent magnets, a critical component used in electric vehicles, wind turbines, electronics, aerospace systems, and defence equipment.
Major Investment Cleared by Andhra Pradesh
The project recently received approval from Andhra Pradesh’s State Investment Promotion Committee, paving the way for one of India’s largest rare earth magnet manufacturing investments.
Officials believe the facility will strengthen Andhra Pradesh’s position as a leading destination for advanced manufacturing while generating employment and attracting further investments in high-technology industries.
Rare Earth Magnets Critical for Future Technologies
The Proterial Rare Earth Magnet Plant will manufacture NdFeB magnets, which are considered among the strongest permanent magnets available and are essential for several strategic industries.
These magnets are widely used in:
- Electric Vehicles (EVs)
- Wind Energy Systems
- Consumer Electronics
- Aerospace Applications
- Defence Equipment
- Industrial Automation
Demand for rare earth magnets has been rising globally due to the rapid expansion of renewable energy and electric mobility sectors.
Reducing Dependence on China
The investment aligns with India’s broader objective of reducing dependence on imported rare earth materials.
China currently dominates the global rare earth magnet industry and accounts for more than 90% of global processing and supply capacity. The establishment of the Proterial Rare Earth Magnet Plant is expected to strengthen India’s domestic supply chain and enhance strategic manufacturing capabilities.
Industry experts say the project could play a key role in supporting India’s ambitions in electric mobility, clean energy, and national security sectors.
Building a Rare Earth Ecosystem in Andhra Pradesh
The facility is expected to complement the emerging rare earth value chain in Andhra Pradesh.
State-owned Indian Rare Earths Limited (IREL) is involved in rare earth refining activities, while Japanese trading company Toyotsu has also established processing operations in the region.
Together, these developments are helping create an integrated ecosystem for rare earth production and advanced materials manufacturing.
Strengthening India-Japan Industrial Cooperation
The investment is also being viewed as an important milestone in India-Japan economic cooperation.
Experts believe the project could support domestic manufacturers, including companies involved in electric vehicle production, while strengthening technological collaboration between the two countries.
With global demand for rare earth magnets expected to grow significantly in the coming years, Andhra Pradesh could emerge as a key hub for strategic materials manufacturing in India.