Lohum, a leading Indian producer of critical minerals, has announced that it will build the country’s first fully integrated rare earth magnet manufacturing facility in Uttar Pradesh, founder and CEO Rajat Verma said 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 to advanced technology, electric mobility, renewable energy, aerospace, defence, 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 comes at a crucial time, as China, which controls most of the global rare earth supply chain, has been tightening export restrictions on these vital materials.

Verma said Lohum plans to meet 20 per cent of India’s total rare earth magnet demand within three years, as the country’s requirement is expected to touch nearly 15,000 tonnes a year by 2030.

The Noida-based company is also planning to raise around 200 million dollars and go public by 2027, as it works toward building India’s first rare earth refining hub.

While the state-run Indian Rare Earths Limited (IREL) has also announced plans to make rare earth magnets, it has yet to begin production at its plant in Visakhapatnam, Andhra Pradesh.

Lohum’s new plant will be built with an investment of Rs 500 crores. “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 already risen to 4,000 tonnes in 2025 and is projected to reach 15,000 tonnes by 2030. Despite holding about 7 per cent of the world’s resources, India still relies on imports for over 90 per cent of its magnets, mostly from China.

“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, the Extended Circular Mineral Strategy by MeitY, the forthcoming Ministry of Heavy Industries scheme with a budget outlay of Rs 7,300 crore to promote rare earth magnet production, as well as the Recycling Incentive Scheme and Extended Producer Responsibility regulations,” the company said in a statement.

Lohum currently operates nine facilities across India, producing a wide range of materials including lithium, cobalt, nickel, copper, aluminium, platinum group metals, catalysts, cathode active materials, and graphite, serving more than 200 clients globally.

The upcoming rare earth element facility marks a new chapter in Lohum’s journey as it aims to become one of the world’s leading sustainable producers of critical materials and strengthen India’s place in the global minerals market.