Nexon Geochem and Russia’s Giredmet Join Hands to Build India’s Rare Earth Processing and Magnet Industry

India’s effort to develop a self-reliant critical-mineral ecosystem has received a boost with Hyderabad-based Nexon Geochem entering into a strategic partnership with Russia’s Giredmet for rare earth processing, technology development and permanent-magnet manufacturing.

Giredmet is the State Research and Design Institute of Rare Metal Industry operating under Russia’s Rosatom State Corporation. The two organisations have signed a Memorandum of Understanding to create an integrated platform in India covering the processing of rare earth materials, technological research, pilot production and the manufacture of high-value components.

The partnership seeks to bridge one of the most important gaps in India’s critical-mineral value chain: the ability to convert available mineral resources into refined materials and advanced industrial products.

From Rare Earth Oxides to Permanent Magnets

The proposed collaboration will extend beyond the extraction or initial separation of rare earth elements. It aims to establish capabilities across several stages of the value chain, beginning with rare earth oxide processing and progressing towards the production of specialised permanent magnets.

Nexon Geochem plans to establish a scalable sintered Neodymium-Iron-Boron permanent-magnet facility in Hyderabad. The company is targeting an annual manufacturing capacity of 1,200 metric tonnes by the financial year 2032–33.

Neodymium-Iron-Boron, commonly known as NdFeB, magnets are among the strongest commercially available permanent magnets. Their high magnetic strength allows manufacturers to develop compact, lightweight and energy-efficient motors, generators and electronic systems.

These magnets have become essential components in electric vehicles, wind turbines, industrial automation, robotics, defence platforms, consumer electronics, medical equipment and advanced communication systems.

Creating a domestic NdFeB manufacturing base would therefore support several strategic and rapidly expanding industries within India.

Strengthening the Critical-Mineral Value Chain

India possesses substantial rare earth resources, with reserves estimated at nearly seven million tonnes. The country is regarded as holding the world’s third-largest rare earth reserve base.

Resource availability, however, represents only the beginning of the industrial process. Rare earth elements must undergo complex separation, purification, refining, alloying and precision manufacturing before they can be used in advanced products.

The economic and strategic value of the sector lies largely in these processing and downstream stages.

India has historically depended on imported materials and components for several rare earth-based applications. Establishing domestic refining and magnet-making capacity would help retain greater value within the country while strengthening supply security for Indian manufacturers.

The Nexon Geochem–Giredmet partnership is designed to address this requirement by creating an end-to-end industrial framework rather than focusing on a single production stage.

Joint Research and Technology Development

Research and development will form a major part of the collaboration.

The two organisations plan to work together on deep-processing technologies for rare metals and rare earth elements. Such technologies are required to achieve the high levels of purity and consistency demanded by industries including aerospace, defence, electronics and clean-energy manufacturing.

The partnership will also develop analytical-control methodologies. These systems are used to measure chemical composition, detect impurities, verify material quality and ensure that refined products meet industrial specifications.

Technology validation and pilot-scale production will allow new processes to be evaluated before they are introduced into large commercial facilities. Pilot plants can help identify operational challenges, optimise energy consumption, improve recovery rates and refine production methods.

This phased approach can reduce technical risk while building the scientific and engineering expertise required for a commercially competitive industry.

Academic and Scientific Cooperation

The proposed programme also includes collaboration with academic and research institutions.

India’s rare earth industry will require trained professionals in mineral processing, metallurgy, chemistry, materials science, mechanical engineering and precision manufacturing. Partnerships between industry and universities can help create specialised courses, laboratory programmes and applied research opportunities.

Academic cooperation may also contribute to the development of indigenous intellectual property in separation technologies, advanced alloys, magnet design, recycling and material recovery.

Building a skilled workforce will be essential for expanding the sector beyond individual projects and establishing a broader manufacturing ecosystem.

Strategic Importance of Permanent Magnets

Permanent magnets play an important role in both civilian and strategic technologies.

In electric vehicles, NdFeB magnets are commonly used in high-efficiency traction motors. Their magnetic strength allows motors to deliver high torque while remaining compact and relatively lightweight.

In renewable energy, permanent magnets are used in generators installed in several types of wind turbines. Strong domestic availability could support India’s growing wind-energy industry and reduce exposure to international supply interruptions.

Defence systems rely on rare earth materials for precision-guided weapons, radar equipment, surveillance platforms, aircraft systems, naval propulsion, drones, communication equipment and electronic warfare technologies.

Robotics and industrial automation also require compact motors and actuators capable of delivering precise movement. As India expands advanced manufacturing, demand for high-performance magnetic materials is expected to grow.

The Hyderabad facility could consequently serve multiple industrial sectors while creating the foundation for additional downstream manufacturing.

Responding to Global Supply-Chain Risks

Rare earth supply chains have gained strategic attention because processing and magnet manufacturing remain concentrated in a limited number of countries.

Disruptions caused by geopolitical tensions, trade restrictions, transportation challenges or sudden changes in export policy can affect industries across the world. Manufacturers dependent on imported magnets may face higher prices, delayed production and limited access to specialised grades.

Developing domestic capabilities provides India with greater control over materials required for national infrastructure and industrial growth.

The collaboration with Giredmet offers Nexon Geochem access to established scientific knowledge in rare-metal processing. India, in turn, provides a large domestic market, an expanding manufacturing base and access to mineral resources that can support long-term industrial development.

The combination of international technical cooperation and Indian production capacity could accelerate the transition from mineral availability to commercial value addition.

Supporting India’s Clean-Energy Transition

India’s clean-energy ambitions will create sustained demand for rare earth materials.

The expansion of electric mobility requires motors, power electronics, battery systems and charging infrastructure. Wind-energy projects depend on generators and specialised electrical equipment. Energy-efficient appliances, smart grids and advanced industrial machinery also use high-performance magnetic components.

Domestic magnet manufacturing can support these industries by improving access to critical inputs and reducing long supply chains.

The proposed 1,200 MTPA facility represents an initial step towards meeting this demand. As the market expands, the technology and manufacturing framework developed through the project could support additional production lines and specialised magnet grades.

The initiative may also encourage component manufacturers to establish operations near the processing and magnet facilities, creating an industrial cluster around rare earth materials and advanced engineering.

Opportunities for Recycling and Circular Manufacturing

A mature rare earth ecosystem will eventually require systems for recovering valuable materials from used products and industrial waste.

Electric motors, wind turbines, electronic devices and defence equipment contain rare earth magnets that can be collected, processed and returned to manufacturing. Recycling can supplement primary mineral supply while reducing the environmental footprint associated with mining and refining.

Although the announced partnership is focused primarily on processing and manufacturing, the knowledge generated through research and pilot production could later support recycling technologies.

Developing a circular supply chain would strengthen resource security and help India use rare earth materials more efficiently.

Hyderabad’s Emerging Advanced-Materials Ecosystem

The selection of Hyderabad for the proposed permanent-magnet facility reflects the city’s growing role in advanced manufacturing, defence production, pharmaceuticals, aerospace and scientific research.

The region possesses an established engineering workforce, research institutions and industrial infrastructure capable of supporting specialised manufacturing.

A rare earth processing and magnet facility could create opportunities for local suppliers producing machinery, testing equipment, industrial gases, chemicals, automation systems and precision components.

The project may also attract downstream users seeking reliable access to domestically manufactured magnets and advanced materials.

Building an Integrated Domestic Industry

India’s rare earth strategy increasingly recognises that mineral reserves must be connected to processing, component manufacturing, research and end-user industries.

The Nexon Geochem–Giredmet agreement reflects this integrated approach. Its proposed activities span laboratory research, technology validation, pilot production, industrial processing and permanent-magnet manufacturing.

Successful implementation could help India move from being a holder of rare earth resources to becoming a producer of high-value materials and components.

The initiative also aligns with the country’s wider goals of strengthening domestic manufacturing, improving supply-chain resilience and developing strategic technologies through international partnerships.

A Step Towards Global Competitiveness

The global market for rare earth materials is expected to remain closely linked with the growth of electric vehicles, renewable energy, robotics, aerospace and digital infrastructure.

India possesses the mineral base, industrial demand and engineering talent required to participate more deeply in this market. Building commercially viable processing and magnet-manufacturing capabilities will determine how effectively the country converts these advantages into industrial strength.

The partnership between Nexon Geochem and Giredmet provides a framework for combining international expertise with Indian manufacturing capacity.

Its success could reduce import dependence, support strategic industries and establish Hyderabad as an important centre for advanced magnetic materials. More broadly, it could contribute to India’s emergence as a competitive global hub for critical-mineral processing and high-technology manufacturing.

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References

1. Nexon Geochem Private Limited. “MoU with Giredmet for Integrated Rare-Earth Processing and Manufacturing in India.” Official company LinkedIn page, May 2026.
   https://www.linkedin.com/company/nexon-geochem/
2. Nexon Geochem Private Limited. “Nexon Geochem Eyes Fully Integrated 1,200 MTPA NdFeB Permanent Magnet Manufacturing Facility by FY 2033.” Official company press release, July 14, 2026.
   https://www.alcircle.com/press-release/nexon-geochem-eyes-fully-integrated-1200-mpta-ndfeb-permanent-magnet-manufacturing-facility-by-fy-2033-120326

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