Highlights
- TRAFALGAR Group plans to build India’s first rare earth metals, alloy, and magnet plant.
- The plant aims to supply 20% of domestic NdFeB magnet demand by 2027.
- The project is supported by India’s state-owned rare earths producer Irel.
- It will be located in Gujarat and is scheduled for completion by 2026.
- This initiative aims to diversify global rare earth magnet production, which is currently dominated by China.
- The project aims to capitalize on India’s growing economy and manufacturing sector.
Based in India, the TRAFALGAR Group of Companies offers a multidisciplinary technology, consultancy and service-work suite of capabilities for clients with an emphasis on specialized in design, engineering, TOT (transfer of technology) inclusive of EPC turnkey execution; provider for seamless integration of process technology driven Industrial Projects in the field of mining & beneficiation, metals & minerals (ferrous/non-ferrous) Iron and Steel, Chemicals including the Titanium, Aluminum, Zinc, Copper, Rare Earths, Power, Industrial-packaging, etc. Incorporated in the1990’s in Dubai, United Arab Emirates, the company operates out of both UAE and India. They report to be extensively involved in the execution of Industrial Plant Projects, catering to clientele in global markets. With network of associates; worldwide, i.e.: Europe, North America, Australia, China, Middle East, Ukraine/Russia and India, Trafalgar commands a wide spectrum of specializations forming the basic foundations of growth, in engineering, technology and process know-how, professional management skills in project management and implementation along with exceptional global sourcing capabilities for plant, machinery, and equipment. Recently it was reported in FastMarkets that the company was seeking to build India’s first rare earth metals, alloy, and magnet plant during the Metal Events 20th International Rare Earths Conference in Washington earlier in the month. Will India potentially be a future hub for rare earth magnet production?
“The goal is to supply 20% of domestic demand for sintered NdFeB [neodymium iron boron] magnets in 2027,” Ian Higgins, Trafalgar’s founder, and director, said in a presentation Rare Earth Exchanges accessed.
Caroline Messecar, writingfor FastMarkets picked up this story on October 18,2024. According to a source of Rare Earth Exchanges Caroline was one of the few journalists in attendance.
On the radar would be the production of high-performance sintered NdFeB magnets, a type used in the electric and hybrid vehicle business, in addition to other applications.
“There are many good reasons to set up a project in India — a large domestic market, highly skilled workforce and a fast-growing manufacturing sector,” he added.
Indian Production?
According to Higgins’ presentation and as reported by Ms. Messecar the layers of support needed to be successful in India are in place. India is known as a tough place for outsiders to do business, particularly in more complex milieus.
But Higgins said the Indian state-owned rare earths producer Irel (opens in a new tab) put out a call for expressions of interest in setting up a NdFeB magnet plant in 2020.
According to the FastMarkets entry Irel would supply the separated rare earth oxides for the project in a bid to establish a fully vertically integrated supply chain for manufacturing NdFeB rare earth magnets for the automotive sector and samarium cobalt (SmCo) rare earth magnets for the defense sector reports Caroline Messecar.
The Facility
The site, a 45,000-square-meter site in the western province of Gujarat, is scheduled for completion by 2026. According to the Trafalgar presentation in addition to the purchase the company secured phase 1 funding for the project. According to the presentation and media report the facility would be able to produce 100 tons per year of neodymium-praseodymium metal and 115 tpy of SmCo alloy.
The first production of sintered NdFeB magnets would thereafter ensue.
According toHiggins, a consultant out of the United Kingdom, “the biggestchallenge is developing a cost-competitive India-centric rare earth magnet business that can compete with Chinese production.”
Magnet Production in the USA
In the United States only a few rare earth magnet producers are in the works. Rare Earth Exchanges recently discussed the announcement of Niron’s commercial pilot facility after the company’s announcement earlier this month that it had selected Sartell in Minnesota as the site for its full-scale manufacturing facility.
Companies like Arnold Magnetic Technologies Corporation, Electron Energy Corporation, and MP Materials (which operates the Mountain Pass mine) are currently producing rare earth magnets in the United States; with Arnold Magnetic Technologies being a prominent manufacturer of high-performance permanent magnets, and Electron Energy specializing in DFARS compliant rare earth magnets like neodymium-iron-boron and samarium cobalt.
Rare Earth Exchanges recently listed some of the other “mine to magnet” initiatives across America:
- Nevada-based MP Materials secured $45 million in support from the U.S. government’s Manufacturing Capability Expansion & Investment Prioritization (opens in a new tab) (MCEIP) awards. MP Materials established the only integrated rare earth mine and oxide production facility in the U.S. The company is expected to continue to add capacity for additional oxide products through 2025, when they are projected to reach full-scale production.
- Lynas USA LLC (opens in a new tab), part of Lynas Rare Earths (opens in a new tab) Australia secured a combined $288 million in MCEIP funding to establish a second domestic, commercial-scale oxide production capability by 2026.
- MCEIP has also invested $10 million to explore the development of extraction technology and alternative sources of rare earth minerals from coal ash, acid mine drainage and other waste streams.
- Noveon Magnetics (opens in a new tab) has established a rare earth magnet manufacturing facility in San Marcos, Texas, with a $28.8 million award from MCEIP. The company produces qualified magnets from extracted or recycled material for both defense and commercial applications.
- MCEIP gives $2.3 million to help TDA Magnetics (opens in a new tab) to demonstrate a capability to source, produce and sell qualified magnets into DOD supply chains.
- 94.1 million awards to E-VAC Magnetics (opens in a new tab) to establish a commercial-scale rare earth magnet manufacturing capability by 2025. As part of this project, E-VAC will also develop domestic capacity to produce rare earth metals and alloys, a critical node of the supply chain linking early-stage rare earth processing to magnet production.
Rare Earth Exchanges’ network of consultants has shared of other projects, but they are under non-disclosure agreement.
What about China?
China dominates the rare earth market: it’s responsible for 70% of global production and nearly 90% of processing of global output, as well as 90% of rare earth element permanent magnet production.
And firms from China are on the hunt to expand. For example, JL Mag (opens in a new tab) launches its sintering furnaces in Baotou, the largest city by urban population in Inner Mongolia, China. They will take the company’s NdFeB magnet capacity in China up to 23,000. Zhaobao Magnet (opens in a new tab) will achieve 8,000 tons of neodymium magnet production capacity by 2024 with factory construction. While Asian Metal (opens in a new tab) and the Golden Dragon Rare Earth (opens in a new tab) effort to develop NdFeB magnets plan in Baotou, another 5,000pa capacity on top of the 15,000tpa capacity in Fujian.
Why India?
The world’s fifth biggest economy, the largest population and one of the fastest growing economies is a start. An English-speaking population and the world’s largest democracies makes India appealing in many ways.
Moreover, India has a rapidly growing manufacturing center, loads of talented engineers and importantly large domestic sources of mineral sands monazite, and a burgeoning market for lots of good needed rare earth magnets.
Importantly TRAFALGAR has inked a deal with IREL, formally Indian Rare Earth Ltd, the only company in India permitted to process monazite according to Higgins presentation earlier this month. In 2020 IREL issued a call or an expression of interest to set up a NdFeB magnet making operation. But even if this plant got off the ground, we would be decades away from India predominance in this field.
What is TRAFALGAR and who is behind the company?
With 25+ years of managing Engineering, Procurement, and Construction Projects, the company focuses on mining and beneficiation of metal and mineral ores, iron and steel making, industrial packaging, power generation, chemicals and petrochemicals, port, and bulk material handling.
With offices in Gurugram, India and Dubai, UAE, the directors include:
- John Elder (opens in a new tab) Former global Rare Earth Director at the engineering group, Hatch
- Ian Higgins Former Managing Director of Less Common Metals Ltd
- Harsh Rajiv Head of operations in India. Previously Operations Site Lead at Amazon’s largest fulfillment center
- Noelle Rajiv master’s in finance from IE Business School, Madrid. Leading the Finance and Corporate Planning of the venture
- Sevi Giaffi Hands-on expertise in establishing magnet plants worldwide
Moving Forward
Rare earth magnet production diversification is needed for a more dynamic, and less Sino-controlled supply chain. India may be a challenging place to build a thriving hub but there is a confluence of reasons why it would make sense to have an alternative to Chinese firms in India.
Daniel
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