
_0_0.jpg)
Stock image for referential purposes only
Reliance Industries, Vedanta and Adani Group are among a number of companies that have expressed interest in setting up rare earth processing facilities in Andhra Pradesh, according to sources familiar with the matter.
{alcircleadd}The move comes as India looks to expand its capabilities in critical minerals and reduce its reliance on imports for materials used in sectors such as electric vehicles, electronics and clean energy.
Sources said around 10 companies have shown interest in developing facilities in the state, which holds significant rare earth mineral reserves.
The plans are outlined in a draft government document and form part of a broader effort to build a complete rare earth supply chain, covering mining, processing and magnet manufacturing.
In February, the federal government identified Andhra Pradesh as one of four states that could host dedicated rare earth corridors. The initiative followed approval of a government programme worth INR 73 billion (USD 766 million) aimed at supporting rare earth magnet production in India.
Explore: The most comprehensive and forward-looking industry-focused report – Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook
Rare earth elements are used in permanent magnets that are found in products such as electric vehicle motors, wind turbines and various electronic devices. Although India has sizeable reserves of these minerals, the country currently has limited capacity to process them into high-purity materials required by industry.
According to the sources, Andhra Pradesh is expected to seek cabinet approval for its rare earth corridor policy within the next month. Once approved, the state plans to invite bids for new processing facilities.
The state government is considering attracting investment, including support for projects for investments of at least INR 10 billion (USD 105 million).
Andhra Pradesh has already attracted large industrial investments in recent years with projects from companies including Google and ArcelorMittal Nippon Steel. The state also plans to attract USD 1 trillion of investments by 2029.
Neither the Andhra Pradesh government nor the companies named in the report had publicly commented on the plans at the time of reporting.
Explore our e-magazine ALuminium LeaderSpeak 2026 for the latest industry insights and trends
Responses







