Japan looks to Andhra Pradesh for a steady supply of rare earths

Japan has asked Andhra Pradesh to secure a reliable supply of rare earth minerals for Japanese industry as the two countries seek closer cooperation on critical minerals. Japanese Ambassador to India Keiichi Ono raised the request with Chief Minister N Chandrababu Naidu in Visakhapatnam on 11 November, ahead of the Confederation of Indian Industry (CII) Partnership Summit on 12 and 13 November. The state government’s account of the meeting gave no supply volumes, delivery timetable or commercial terms.

What makes Andhra Pradesh a potential rare earth supplier?

Andhra Pradesh holds nearly a quarter of India’s beach sand mineral resources, the second-largest share among the states, according to the Andhra Pradesh Mineral Development Corporation (APMDC). Its coastal deposits contain monazite, a source of rare earth elements, alongside ilmenite, rutile and zircon. Ilmenite and rutile are feedstocks for titanium products, while rare earths recovered from monazite can be processed into materials used in electronics and permanent magnets.

APMDC has secured approvals for 10 major beach sand deposits across coastal districts including Srikakulam, Vizianagaram, Visakhapatnam, Kakinada and Krishna. In July 2026, the state also reserved 12 square kilometres around three villages in inland Palnadu district for the Atomic Minerals Directorate for Exploration and Research to prospect for rare earth elements and associated critical minerals.

How does the rare earth corridor fit into India’s plans?

The Union Budget 2026–27 identified Andhra Pradesh, Kerala, Odisha and Tamil Nadu for dedicated rare earth corridors covering mining, processing, research and manufacturing. The corridors complement a ₹7,280-crore central scheme to establish 6,000 tonnes a year of integrated rare earth permanent magnet manufacturing capacity. These magnets are used in electric vehicle motors, wind turbines and electronics.

India and Japan have worked together on rare earths before. Under a 2012 memorandum, India’s Department of Atomic Energy designated Indian Rare Earths Limited as its partner, while Japan’s Ministry of Economy, Trade and Industry designated Toyota Tsusho Corporation to separate and refine rare earth products supplied by the Indian company. The Visakhapatnam talks bring Andhra Pradesh’s proposed corridor into that wider bilateral relationship.

What other Japanese projects featured in the talks?

The delegation said Proterial’s amorphous metal project at Sri City was targeting a December 2026 production start. Proterial is developing the plant with Shirdi Sai Electricals through Metglas (India) Private Limited, with initial annual capacity of about 30,000 tonnes. The plant will produce amorphous alloy ribbon used in energy-efficient transformer cores, primarily for the Indian market.

The talks also covered a separate supply arrangement for marine fuel. Japan’s JERA and AM Green have signed binding heads of agreement covering around 70,000 tonnes of green ammonia a year for five years, with scope for an extension. AM Green plans to produce the ammonia at its Kakinada facility, which is scheduled for commissioning in 2028–29, for supply to Japan’s marine bunkering market.

FAQs

Has Andhra Pradesh signed a rare earth supply agreement with Japan?

The state government disclosed Japan’s request for a steady supply. It announced no contract, shipment volumes or delivery schedule.

Which mineral is a source of rare earth elements in Andhra Pradesh?

Monazite, found in the state’s beach sand deposits, contains rare earth elements.