Nexon Geochem to Build India's First Integrated Rare Earth Magnet Plant

Nexon Geochem Private Limited, an advanced materials company based in Hyderabad, has taken a significant step to develop India's indigenous rare earth manufacturing capabilities. The firm has entered into a Memorandum of Understanding with Giredmet, the State Research and Design Institute of Rare Metal Industry operating under Russia's Rosatom State Corporation, to accelerate rare earth minerals processing and production.

The collaboration targets the establishment of a fully integrated manufacturing platform capable of producing 1200 metric tonnes per annum (MTPA) of sintered NdFeB permanent magnets by fiscal year 2033. This venture marks a notable initiative to address a major vulnerability in India's rare earth value chain, creating an end-to-end operation from rare earth oxide inputs to finished magnet products.

Giredmet brings nearly a century of institutional knowledge in rare metals research, high-purity separation processes, and advanced material systems to the partnership. The MoU encompasses joint research and development of deep-processing technologies for rare and rare-earth metal raw materials, development of analytical control methodologies, technology scaling from laboratory to pilot production phases, and collaborative academic programmes.

India's consumption of rare earth permanent magnets reached 7,500 MTPA in 2026, growing at a compound annual growth rate of 30 percent, with the market valued at INR 5,625 crore at an average price of INR 7,500 per kilogram. Industry projections indicate consumption will climb to 12,500 MTPA by 2031, expanding the market size to INR 20,625 crore with prices reaching INR 16,500 per kilogram, representing an 18 percent CAGR.

The demand surge is being driven largely by the expansion of electric vehicle adoption and renewable energy installations. However, global supply chains for high-performance magnets remain concentrated in a few countries, forcing India to rely heavily on imports despite its rapidly escalating domestic requirements.

NdFeB permanent magnets serve as essential components in electric vehicles, wind turbines, defence systems, robotics, and advanced electronics—making them critical to the global energy transition and technological advancement. Recent export restrictions imposed by China during 2025-26 underscored the fragility of India's supply chains in electric vehicles, defence electronics, and industrial manufacturing sectors.

While India holds the world's third-largest rare earth reserves, estimated at approximately 7 million tonnes, the country currently lacks commercial-scale capabilities in rare earth separation, refining, and industrial magnet manufacturing.

Praveen Choudhary, Founder of Nexon Geochem, stated: "Securing the critical mineral value chain is no longer just an economic goal, it is a necessity for global technological resilience. Bringing a fully integrated sintered NdFeB magnet manufacturing facility to life requires world-class technology transfer and collaborating with an institution that holds nearly a century of rare metal expertise is a massive milestone. The real work begins now."

Konstantin Ivanovskikh, Deputy Director for Science and Innovation at Giredmet, characterised the signed agreements as "concrete technological roadmaps" rather than symbolic commitments, emphasising that they represent movement toward "practical implementation of rare earth magnet production projects" and strengthen the technological sovereignty of both nations.