Highlights
- State-owned IREL begins production of critical rare earth magnets and metals in Vishakhapatnam and Bhopal.
- India aims to develop a closed-loop rare earth ecosystem and reduce dependence on China’s rare earth supply.
- IREL expands international footprint with strategic MOUs and targets key sectors like atomic energy, defense, and space.
In a bold move to secure domestic rare earth supply chains and reduce dependence on China, state-owned IREL (India) Ltd (opens in a new tab) has commenced production of critical rare earth magnets and metals, marking a turning point in India’s industrial strategy. The unlisted Miniratna public sector undertaking has begun manufacturing Samarium-Cobalt (SmCo) magnets, Cerium, and Lanthanum at newly commissioned facilities in Vishakhapatnam and Bhopal—targeting strategic applications in atomic energy, defense, and space.
This comes as India suspends a 13-year rare earth export agreement with Japan, prioritizing national stockpiles amid global tensions over China’s rare earth supply restrictions. With China still refining nearly 90% of the world’s rare earths, New Delhi is pivoting hard towards domestic value addition and midstream industrialization.
IREL’s SmCo magnets have already been delivered to top research institutions, such as BARC and DMRL, for validation. The company also aims to develop NdFeB recovery from end-of-life magnets, signaling India’s intention to establish a closed-loop rare earth ecosystem. The Vishakhapatnam Rare Earth Permanent Magnet (opens in a new tab) (REPM) Plant and the Rare Earth & Titanium Theme Park (opens in a new tab) (RETTP) in Bhopal are central to this strategy.
While IREL reported a record mineral output of 531,000 tonnes and forex earnings of ₹962 crore (~$115 million USD), it faces persistent underutilization and bottlenecks in new resource approvals. Meanwhile,its REE refining performance remains uneven. Odisha’s Sands Complex saw a 9.8% increase in chemical output, but high-purity production fell 9% due to inventory controls and weak domestic demand.
Internationally, IREL is expanding its footprint through Memoranda of Understanding (MoUs) in Oman, Sri Lanka, Vietnam, and Bangladesh. However, rising global competition, especially in Zircon markets, poses fresh headwinds.
For investors tracking India’s emergence in the rare earth magnet space, IREL’s vertical integration push and geopolitical recalibration are signals of an assertive national strategy, not just economic, but industrially sovereign.
Plant and the Rare Earth & Titanium Theme Park (RETTP) in Bhopal
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