Lohum, a diversified producer of critical minerals, is going to build India’s first integrated rare earth element (REE) magnet production facility in Uttar Pradesh, the company's founder and CEO Rajat Verma announced on November 10.
"The state-of-the-art plant will have production capacity of 2,000 metric tonnes. The facility will refine and produce both light and heavy rare earth elements, key for advanced technology, electric mobility, renewable energy, aerospace, defense, electronics; and more. This will be India’s first end-to-end operation - from refining rare earth oxides to producing finished magnets," Verma told Moneycontrol.
The move is significant as it comes at a time when China, which dominates the global supply of rare earth elements and magnets, has been tightening export controls on these critical materials as well as magnets.
Verma said the company expects to serve 20 percent of India’s total rare earth magnets demand in the next three years, as the country’s requirement is likely to hit around 15,000 tonnes per annum by 2030.
The Noida-based company is eyeing a $200 million fundraise and IPO by 2027 as it builds India’s first rare-earth refining hub.
To be sure, Central public sector enterprise (CPSE) IREL has also announced that it would produce rare earth permanent magnets. However, it is yet to begin production from its exclusive plant set up in Andhra Pradesh’s Visakhapatnam.
The plant announced by Lohum will be established with an investment of Rs 500 crore. "This facility will be ready in about two years and it addresses a critical gap in India’s manufacturing value chain,” said Verma.
“Rare earth elements are foundational to our nation’s clean energy ambitions and strategic industries. By establishing domestic production capabilities, we’re not only reducing import dependence but creating a resilient, sustainable supply chain that will support India’s growth for decades to come," he added.
India’s demand for rare earth magnets has grown to 4,000 tonnes in 2025 and is projected to reach 15,000 tonnes by 2030. Despite holding 7 percent of the world’s resources, India still imports more than 90 percent of its rare earth magnets, primarily from China, which dominates the global supply chain.
"In a first for India’s critical minerals ecosystem, Lohum's investment is strategically aligned with several key Government of India initiatives, including the National Critical Mineral Mission (NCMM), the Extended Circular Mineral Strategy (ECMS) by MeitY, the forthcoming Ministry of Heavy Industries (MHI) scheme with a budget outlay of ₹7,300 crore to promote rare earth magnet production, as well as the Recycling Incentive Scheme and Extended Producer Responsibility (EPR) regulations," the company said in a statement on November 10.
Lohum currently operates nine facilities across India, spanning a broad product portfolio that includes lithium, cobalt, nickel, copper, aluminium, platinum group metals, catalysts, cathode active materials, and graphite, serving 200+ customers globally.
The addition of the rare earth element facility marks a new era in Lohum’s journey to become one of the largest diversified producer of sustainable critical materials and placing India firmly on the global critical mineral leadership map.
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