In a major turning point for India’s rare earth industry, Nexon Geochem has signed an MoU with Giredmet, the State Research and Design Institute of Rare Metal Industry under Russia’s Rosatom State Corporation, to accelerate rare earth minerals processing and advanced magnet production.
The partnership positions Nexon Geochem to establish one of India’s first integrated rare earth oxide-to-magnet manufacturing platforms, with the company targeting a production capability of 1,200 MTPA by FY2033.
Through the collaboration, the Hyderabad-based advanced materials company aims to address a critical weakness in India’s rare earth value chain by creating a full-cycle ecosystem — from rare earth oxide inputs and high-purity processing to finished sintered NdFeB permanent magnets.
As its immediate focus, Nexon Geochem plans to develop a highly scalable sintered NdFeB permanent magnet manufacturing facility in Hyderabad, laying the foundation for domestic production of magnets essential to electric vehicles, renewable energy systems, defence applications, robotics and advanced electronics.
Giredmet brings nearly a century of expertise in rare metals research, high-purity separation technologies and advanced material systems to the partnership. The MoU will focus on joint research and development of deep-processing technologies for rare and rare-earth metal raw materials, along with the development of high-purity rare earth metals, compounds and finished materials for applications across electronics, chemical and nuclear industries.
The collaboration will also cover analytical control methodologies, technology scale-up from laboratory research to pilot production, and joint academic and educational initiatives.
India’s rare earth demand is rising rapidly, driven largely by electric vehicle adoption and renewable energy expansion. Domestic consumption is estimated at 7,500 MTPA in 2026, growing at a 30% CAGR, with the market valued at approximately Rs. 5,625 crore at an average price of Rs. 7,500 per kg.
By 2031, consumption is projected to reach 12,500 MTPA, expanding the market size to Rs. 20,625 crore, with prices estimated at Rs. 16,500 per kg and an 18% CAGR.
Despite this growth, India remains heavily dependent on imports for high-performance rare earth magnets, with global supply chains concentrated among a handful of producers. Nexon Geochem’s partnership with Giredmet seeks to close this strategic gap by creating an end-to-end domestic manufacturing ecosystem, reducing import dependence and strengthening India’s critical minerals security.
Praveen Choudhary, Founder of Nexon Geochem Private Limited said, “Securing the critical mineral value chain is no longer just an economic goal, it is a necessity for global technological resilience. Bringing a fully integrated sintered NdFeB magnet manufacturing facility to life requires world-class technology transfer and collaborating with an institution that holds nearly a century of rare metal expertise is a massive milestone. The real work begins now.”
Konstantin Ivanovskikh, Deputy Director for Science and Innovation at Giredmet described the signed memoranda as “concrete technological roadmaps” rather than statements of intent, adding that the agreements represent a move toward “practical implementation of rare earth magnet production projects” and a contribution to the technological sovereignty of both countries.
The strategic importance of NdFeB magnets has grown sharply as nations race to secure supply chains for next-generation technologies. These high-performance magnets are critical components in EV motors, wind turbines, defence systems, robotics and advanced electronics.
Recent export restrictions imposed by China during 2025–26 highlighted vulnerabilities in global rare earth supply chains, exposing risks for India’s electric vehicle, defence electronics and industrial manufacturing sectors.
Although India holds the world’s third-largest rare earth reserves, estimated at nearly 7 million tonnes, the country continues to face a major gap in commercial-scale rare earth separation, refining and industrial magnet manufacturing.
