Nexon Geochem has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB) to set up a rare-earth permanent magnet manufacturing facility in Kakinada, Andhra Pradesh.
As the primary investor behind the project, Nexon Geochem has committed a total investment of ₹1,250 crore across two phases: ₹750 crore dedicated to Phase 1 and ₹500 crore allocated for Phase 2.
Neodymium-Iron-Boron (NdFeB) rare earth permanent magnets are key intermediate components of permanent magnet synchronous (direct drive) generators in wind turbines (especially for offshore turbines) and electric synchronous traction motors for propulsion systems in battery and hybrid electric vehicles (HEVs).
This will help create 886 jobs (386 direct and 500 indirect) in the region.
The phased investment outlay, alongside Nexon’s specialised technology, design engineering, and advanced equipment will back a world-class manufacturing ecosystem across a 30-acre footprint.
Phase 1 will create 256 direct jobs and 300 indirect jobs (across supply chains, logistics, and service ancillaries) with a targeted operational deadline of April 2029 and phase 2 will expand capacity adding another 130 direct jobs and 200 indirect jobs by April 2035.
The facility is engineered to achieve a massive annual production capacity of 600 tonnes of high-grade permanent magnets, heavily serving the rapidly growing electric vehicle (EV), renewable energy, and advanced manufacturing sectors.
Praveen Kumar Choudhary, Director of Nexon Geochem, told businessline, “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.”
This is not just an investment in manufacturing; it is an investment in India’s long-term industrial and strategic capabilities, he emphasised.
Under the terms of the 12-month agreement, the APEDB will serve as the primary facilitator, offering fast-track promotional assistance to streamline market entry and coordinating high-level regulatory discussions with the central government.
Nexon Geochem will work closely with relevant state departments to progress land allotment and infrastructure development in a strictly time-bound manner. Through this multi-phase development roadmap, Nexon Geochem is well-positioned to scale domestic manufacturing capacity swiftly, delivering long-term strategic value to both the state of Andhra Pradesh and India’s broader green economy.