New Delhi: In a major development, Japan’s Proterial Ltd., backed by Bain Capital, is considering manufacturing rare earth magnets in India.
This comes at a time when the country is grappling with export restrictions imposed by China on these critical components used in automobiles and electronic products. According to the reports, the Modi government is also providing subsidies to private sector companies for the mining and refining of rare earth elements in the country.
Mint, citing two individuals familiar with the matter, has reported that the Japanese company is planning to manufacture its key neodymium ferrite boron (NdFeB) permanent magnets in India under its Neomax brand, even as several companies in India are already exploring alternative supply chains.
Company Want to Set Up a Plant in India
A person familiar with the matter said, “The company is looking for a facility in India where it can manufacture magnets. Rare earth oxides can be sourced from within India and abroad.” It is important to note that at present the company has two rare earth element plants in Japan and China. These primarily produce rare earth magnets. The company’s Chinese facility produces more than 2,000 tons of permanent magnets.
The company generated a revenue of USD 5.2 billion, in the previous financial year that ended on March 31, 2025,
Most of the processing of rare earth elements like neodymium takes place in China. India also has reserves of neodymium, which it currently exports to Japan for the processing of light rare earth elements. Neodymium has more diverse applications, and the United States and Myanmar also have some reserves.
India Accelerates Rare Earth Elements Production
- India has ramped up the production and mining of rare earth elements.
- The work is also underway on light rare earth magnets used in motors, which are also utilized in vehicles.
- Indian company Sona Comstar, which manufactures these motors, announced that it has begun using light rare earth magnets.
- Production levels have returned to what they were before April.