Nexon Geochem partners Russia’s Giredmet to build India’s rare earth magnet manufacturing ecosystem

HYDERABAD: Hyderabad-based Nexon Geochem Private Limited has signed a Memorandum of Understanding (MoU) with Giredmet, Russia’s premier State Research and Design Institute of Rare Metal Industry under Rosatom State Corporation, to establish one of India’s first integrated rare earth oxide-to-magnet manufacturing platforms and accelerate the country’s self-reliance in critical minerals.

The partnership marks a significant milestone in India’s efforts to develop a domestic rare earth value chain. Nexon Geochem plans to establish a fully integrated 1,200 metric tonnes per annum (MTPA) sintered NdFeB permanent magnet manufacturing facility by FY2033, positioning Hyderabad as a strategic hub for advanced rare earth materials and magnet production.

The collaboration will combine Nexon Geochem’s manufacturing ambitions with Giredmet’s nearly century-long expertise in rare metals research, high-purity separation technologies and advanced material systems. The agreement covers joint research and development, deep-processing technologies for rare earth materials, analytical control systems, pilot-scale production and academic collaborations to support technology development and skill creation.

As part of its immediate roadmap, Nexon Geochem will establish a scalable sintered Neodymium-Iron-Boron (NdFeB) permanent magnet manufacturing facility in Hyderabad. The company aims to create an end-to-end domestic platform covering rare earth oxide inputs through to finished high-performance magnets, addressing one of the most critical gaps in India’s strategic manufacturing ecosystem.

The announcement comes at a time when demand for NdFeB permanent magnets is rising rapidly, driven by electric vehicles, renewable energy systems, robotics, defence technologies and advanced electronics. According to the company, India’s domestic consumption currently stands at 7,500 MTPA and is expected to reach 12,500 MTPA by 2031, creating a rapidly expanding market for indigenous manufacturing.

Despite possessing the world’s third-largest rare earth reserves, India continues to rely heavily on imports for commercial-scale rare earth separation, refining and permanent magnet production. Recent export restrictions imposed by China during 2025–26 exposed vulnerabilities across India’s EV, defence electronics and industrial manufacturing sectors, reinforcing the need for domestic manufacturing capabilities.

Praveen Choudhary, Founder of Nexon Geochem, said securing the critical mineral value chain has become essential for technological resilience. He described the collaboration with Giredmet as a major milestone in bringing world-class technology transfer and integrated rare earth magnet manufacturing to India.

Konstantin Ivanovskikh, Deputy Director for Science and Innovation at Giredmet, described the agreement as a “concrete technological roadmap” that moves beyond intent towards practical implementation of rare earth magnet production while contributing to the technological sovereignty of both countries.

Incorporated in March 2025, Nexon Geochem is developing its manufacturing facility under the Government of India’s Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets. The company aims to build India’s downstream rare earth value chain by converting critical mineral inputs into advanced industrial products, including high-purity rare earth compounds and permanent magnets.

The partnership reflects India’s growing focus on strengthening domestic capabilities in strategic materials essential for the country’s clean energy transition, electric mobility ambitions, advanced manufacturing and national security. By establishing an integrated rare earth magnet ecosystem, Nexon Geochem aims to position India as a competitive global producer of high-performance permanent magnets while reducing dependence on imported critical materials.