Lohum Opens India's First Integrated Rare Earth Magnet Facility with ₹500 Crore Investment

Lohum has inaugurated the country's first integrated rare earth element (REE) magnet production facility in the state of Uttar Pradesh, marking a substantial milestone in India's clean energy and advanced manufacturing ecosystem. The announcement was made by Amitabh Kant ex-CEO of NITI Aayog, at the organisation's annual flagship event Lohum Day 2025, ET Auto has reported.

Lohum, which already operates nine facilities across India, produces a diverse range of sustainable critical materials, including lithium, cobalt, nickel, copper, aluminium, and graphite, and serves over 200 global customers.

₹500 Crore Investment

Established with an investment of ₹500 crore, the new facility will possess a production capacity of 2,000 metric tonnes and will refine and manufacture both light and heavy rare earth elements -- essential for electric vehicles (EVs), renewable energy, aerospace, defence, and electronics.

"This facility addresses a critical gap in India's manufacturing value chain," said Rajat Verma, Founder and CEO of Lohum, as quoted by ET Auto. 

"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."

Domestic Demand Surge Contrasts with Import Dependency

India's demand for rare earth magnets has surged to 4,000 tonnes in 2025 and is projected to reach 15,000 tonnes by 2030. Despite holding approximately 7 per cent of global resources, the country still imports over 90 per cent of its rare earth magnets, predominantly from China.

The new facility corresponds with several government initiatives, including the National Critical Mineral Mission (NCMM), Extended Circular Mineral Strategy (ECMS) by MeitY, and the Ministry of Heavy Industries' ₹7,300-crore scheme to promote domestic magnet production.

Plant Likely to Meet 20% of Local Magnet Requirements by 2027

Once fully operational, Lohum's REE plant is anticipated to meet up to 20 per cent of India's magnet demand by 2027, supporting EV, renewable energy and defence manufacturing.