Nexon Geochem Private Limited, a Hyderabad-based advanced materials company, has signed a Memorandum of Understanding with Giredmet, the State Research and Design Institute of Rare Metal Industry, which operates under Russia's Rosatom State Corporation. The agreement is aimed at accelerating India's rare earth minerals processing and magnet production capabilities, with the company targeting a production benchmark of 1,200 MTPA by FY 2033.
Under the partnership, Nexon Geochem plans to build an integrated platform covering the full value chain, from rare earth oxide inputs to finished magnet production. Its immediate goal is a scalable sintered NdFeB permanent magnet manufacturing facility in Hyderabad, which the company describes as among the first integrated oxide-to-magnet platforms in the country.
Giredmet, founded nearly a century ago, brings experience in rare metals research, high-purity separation, and advanced material processing. The scope of the MoU includes joint research and development of deep-processing technologies for rare and rare-earth raw materials, spanning applications in electronics, chemicals, and nuclear industries. It also covers development of analytical control methods, scale-up from laboratory to pilot production, and joint academic programs.
The move comes as India's domestic rare earth consumption is projected to grow sharply. According to figures cited in the announcement, consumption stood at 7,500 MTPA in 2026, with the market valued at roughly Rs 5,625 crore at an average price of Rs 7,500 per kg. By 2031, consumption is projected to reach 12,500 MTPA, pushing the market to an estimated Rs 20,625 crore as prices rise to around Rs 16,500 per kg. Despite this growth, the global supply chain for high-performance magnets remains concentrated in a small number of countries, leaving India reliant on imports.
NdFeB permanent magnets are used widely in electric vehicles, wind turbines, defence systems, robotics, and advanced electronics. Export restrictions imposed by China during 2025–26 highlighted vulnerabilities in India's EV, defence electronics, and industrial manufacturing supply chains. India holds the world's third-largest rare earth reserves, estimated at nearly 7 million tonnes, but currently lacks commercial-scale rare earth separation, refining, and magnet manufacturing capacity.
Nexon Geochem was incorporated in March 2025 as a greenfield venture and is developing its facility under the Indian government's scheme to promote manufacturing of sintered rare earth permanent magnets.