Uttar Pradesh to Produce 2,000 Tonnes of Rare Earth Minerals as India Cuts Dependence on China

In a significant stride towards self-reliance, India is set to reduce its dependence on China for rare earth minerals. Lohum, an Indian recycling company, has launched a rare earth element magnet production facility in Uttar Pradesh, with an investment of Rs 500 crore. The plant boasts a production capacity of 2,000 metric tonnes annually.

The facility is designed to refine and produce both light and heavy rare earth elements, which are essential for various advanced technologies. These minerals are critical components in electric vehicles, renewable energy systems, aerospace, defense, and electronics.

This initiative aligns with the Indian government's efforts to boost domestic manufacturing and reduce reliance on imports. The investment is in line with government initiatives such as the National Critical Mineral Mission (NCMM), the Extended Circular Mineral Strategy (ECMS) by MeitY, and the forthcoming Ministry of Heavy Industries (MHI) 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 (EPR) regulations.

Siddharth Nautiyal, Head of Strategy and New Initiatives at Lohum, emphasized the importance of rare earths for industrial security. He stated that India needs rare earth magnets for motors, turbines, and EVs, and it is crucial for India to build its own resilient supply chain.

Lohum expects to meet 20% of India's total demand for rare earth magnets within the next three years. India's demand for rare earth magnets is projected to reach 15,000 tonnes per annum by 2030. The new facility will be India's first end-to-end operation, refining rare earth oxides into finished magnets.

Lohum is also preparing for an Initial Public Offering (IPO) by 2027 as part of its goal to become India's largest producer of sustainable critical minerals across lithium, cobalt, nickel, and rare earths.

Lohum Founder & CEO Rajat Verma said that this facility addresses a critical gap in India's manufacturing value chain and that by establishing domestic production capabilities, the company is not only reducing import dependence but creating a resilient, sustainable supply chain that will support India's growth for decades to come.

Amitabh Kant, Former G20 Sherpa of India and Former CEO, NITI Aayog, noted that Lohum's REE facility represents the kind of strategic domestic capacity-building essential for India's industrial growth and strategic autonomy, which is vital for achieving India's Viksit Bharat goals.