Hyderabad: Nexon Geochem, a pioneer in critical industrial materials, today announced the signing of a landmark Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board to establish an integrated sintered NdFeB rare-earth permanent magnet manufacturing facility in Thondangi, Kakinada district.
The agreement was signed at the regional conference of the 31st CII Partnership Summit in the presence of the Honorable Deputy Chief Minister of Andhra Pradesh, Mr. K. Pawan Kalyan, alongside Minister for Commerce and Industry T.G. Bharat, and other senior dignitaries and signed by Praveen Kumar Choudhary, Director of Nexon Geochem Private Limited.
As the driving force and primary investor behind this project, Nexon Geochem is committing a total investment of ₹1,250 crore across two strategic phases: ₹750 crore dedicated to Phase 1 and ₹500 crore allocated for Phase 2 creating will inject 886 total jobs (386 direct and 500 indirect) into the regional economy, making it a foundational driver of employment in the Godavari region.
The phased investment outlay alongside Nexon’s specialized 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 (₹500 Crores) 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.
This strategic venture targets a massive manufacturing bottleneck for India. Sintered NdFeB (Neodymium Iron Boron) rare-earth permanent magnets are critical components required for electric vehicles (EVs), defense aviation, and renewable energy systems, sectors that currently rely heavily on foreign supply chains. In alignment with the Andhra Pradesh government’s emphasis on green industrial growth and ecological integrity, Nexon Geochem is fully dedicated to safeguarding local resources, including the region’s vital coastline and mangrove ecosystems. In response to the Deputy Chief Minister’s call for industrial development that actively uplifts local communities, Nexon Geochem intends to explore the creation of local research facilities and centres of excellence within its area of operation.
Praveen Kumar Choudhary, Director of Nexon Geochem Private Limited, said, “This MoU marks a significant step in Nexon Geochem’s commitment to building India’s domestic rare-earth permanent magnet manufacturing capabilities. 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.”
He added, “Andhra Pradesh will play a pivotal role in this journey. We are committed to building world-class manufacturing capabilities, creating employment opportunities and contributing to India’s emergence as a globally competitive hub for critical materials. This is not just an investment in manufacturing; it is an investment in India’s long-term industrial and strategic capabilities.”
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 Union Government of India. 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.