Nexon Geochem to Invest ₹1,250 Crore in 600-Tonne Rare Earth Magnet Plant at Kakinada

Summary

Hyderabad-based Nexon Geochem has signed an MoU with the Andhra Pradesh Economic Development Board to set up a ₹1,250 crore integrated rare earth permanent magnet plant at Thondangi in Kakinada district. The facility will produce 600 tonnes a year of sintered NdFeB magnets for EVs, renewable energy and defence, with the first phase targeted for April 2029.

Article

Kakinada: Advanced materials company Nexon Geochem has announced plans to invest ₹1,250 crore in an integrated rare earth magnet plant in Andhra Pradesh, as India works to cut its dependence on imported critical materials.

The company signed a memorandum of understanding with the Andhra Pradesh Economic Development Board (APEDB) on October 14, 2026, to set up the facility at Thondangi in Kakinada district.

What will the plant produce?

The plant will manufacture sintered neodymium-iron-boron (NdFeB) permanent magnets, with a planned capacity of 600 tonnes a year. These magnets are used in electric vehicle motors, wind turbines, industrial automation and defence applications.

What is the investment timeline?

The investment will be made in two phases. The first phase involves ₹750 crore, with operations targeted to begin by April 2029. The second phase will add ₹500 crore to expand capacity by April 2035.

The project will be spread over 30 acres and is expected to generate 886 jobs, comprising 386 direct and 500 indirect positions. The first phase is projected to create 256 direct and 300 indirect jobs.

Under the 12-month agreement, APEDB will help with regulatory coordination, land allotment and infrastructure development. The project is still at the planning stage.

Who attended the signing?

The MoU was signed at the regional conference of the 31st CII Partnership Summit, in the presence of Andhra Pradesh Deputy Chief Minister Pawan Kalyan and Commerce and Industry Minister T.G. Bharat.

Praveen Kumar Choudhary, Director of Nexon Geochem, said the company aims to build an integrated NdFeB magnet ecosystem that “strengthens supply-chain security, reduces import dependence.”

How does it fit India’s rare earth push?

In November 2025, the Union Cabinet approved a ₹7,280 crore scheme to promote domestic manufacturing of sintered rare earth permanent magnets. It aims to build 6,000 tonnes of annual integrated capacity, from converting rare earth oxides into metals and alloys to producing finished magnets. Five beneficiaries are to be selected through competitive bidding, each eligible for up to 1,200 tonnes of annual capacity.

According to the Ministry of Heavy Industries, India’s demand for these magnets is currently met mainly through imports, and domestic consumption is expected to double by 2030 from 2025 levels.

Nexon Geochem has not said whether the Andhra project has secured incentives under the scheme. In July 2026, it signed an MoU with Russia’s Giredmet, a Rosatom research institute, on rare earth processing technologies, and outlined a target of 1,200 tonnes of annual magnet capacity by FY2033. It has not clarified how the 600-tonne Kakinada plant fits that target.

Why does it matter?

China dominates global rare earth magnet production, and recent export restrictions have exposed the vulnerability of supply chains for EVs, electronics and defence. Domestic magnet manufacturing would reduce India’s reliance on imports and support its EV and renewable energy ambitions.

The choice of Kakinada also adds to Andhra Pradesh’s growing industrial base along its east coast, where port access supports imports of raw materials and the movement of finished products. However, the scale of import substitution will depend on securing rare earth feedstock, building production expertise and winning qualification from automotive and component manufacturers.

FAQs

How much is Nexon Geochem investing?

₹1,250 crore, in two phases of ₹750 crore and ₹500 crore.

Where will the plant be located?

At Thondangi in Kakinada district, Andhra Pradesh, on 30 acres.

What is the plant’s capacity?

600 tonnes a year of sintered NdFeB permanent magnets.

When will production begin?

The first phase is targeted to start operations by April 2029.

How many jobs will the project create?

About 886 jobs, including 386 direct and 500 indirect positions.