Nexon Geochem will invest ₹1,250 crore to establish a rare-earth permanent magnet manufacturing facility in Thondangi, in Andhra Pradesh’s Kakinada district, under a partnership with the Andhra Pradesh Economic Development Board. The project is planned to produce 600 tonnes of high-grade sintered neodymium-iron-boron (NdFeB) magnets annually for electric vehicles, wind turbines, industrial automation and defence applications.
The Hyderabad-headquartered advanced materials company announced the signing of a memorandum of understanding with the Andhra Pradesh Economic Development Board on Wednesday. The facility will be developed in two phases, with ₹750 crore allocated to the first phase and ₹500 crore to the second, Nexon Geochem said in a statement.
Sintered NdFeB magnets are used in systems that require strong, compact and efficient permanent magnets. In the applications identified by the company, they are components in electric-vehicle motors, wind-energy equipment, industrial machinery and defence systems. The planned facility is intended to manufacture these magnets within India rather than rely entirely on imported finished products.
Nexon Geochem said the project would create an integrated rare-earth magnet manufacturing ecosystem in Andhra Pradesh. The company described the investment as part of its effort to support localisation and import substitution in high-value components used by the automotive, green-energy and defence sectors.
“Our vision is to establish an integrated NdFeB magnet manufacturing ecosystem that strengthens supply-chain security, reduces import dependence, and supports India’s ambitions in electric mobility, renewable energy and advanced manufacturing,” Praveen Kumar Choudhary, Director, Nexon Geochem Pvt Ltd, said in the statement.
The announcement comes as India seeks to build domestic capacity for critical minerals and the components manufactured from them. Rare-earth permanent magnets are a key link between mineral processing and finished technologies such as electric motors and wind-turbine generators. Establishing local production therefore involves more than adding manufacturing capacity: it connects mineral availability, material processing, engineering, automotive production and clean-energy equipment supply chains.
For Andhra Pradesh, the proposed facility adds an advanced-materials project to the state’s industrial development pipeline. The project’s location in Thondangi, Kakinada district, places the proposed manufacturing activity within a region that the company and the state agency have identified for the investment. The announcement does not specify the project’s construction schedule, employment potential, land requirement or the expected commissioning date.
Nexon Geochem said the facility would serve the rapidly growing electric-vehicle, renewable-energy and advanced-manufacturing sectors. The company specialises in high-tech material manufacturing and advanced industrial engineering, with a stated focus on developing critical components for defence, green energy and automotive supply chains.
The first phase of the project is expected to account for ₹750 crore of the total investment, while the second phase represents the remaining ₹500 crore. The company’s statement did not provide further details on the individual production milestones or the broader supply arrangements for rare-earth inputs. The next steps will depend on the implementation of the MoU and the development of the proposed facility in Kakinada district.
