Lohum Aims 20% Of India's Rare Earth Magnet Demand With First Plant After China Hurdles

In a bid to strengthen India's push for self-reliance in critical minerals, Lohum, a startup claiming to be the country’s largest producer of sustainable critical minerals, has launched India’s first integrated rare earth magnet production facility in Uttar Pradesh.

The plant, which involves a Rs 500-crore investment, aims to secure the nation’s supply chain for electric vehicles, wind turbines, and clean energy systems.

Speaking to NDTV Profit, Siddharth Nautiyal, Head of Strategy and New Initiatives at Lohum, said rare earths have become the next frontier of industrial security. "India needs rare earth magnets for motors, turbines, and EVs, but most of the world’s supply comes from one country. Like every major economy, India must build its own resilient supply chain," he said.

The new facility is capable of producing 2,000 metric tonnes of magnets annually, and will be India’s first end-to-end operation, refining rare earth oxides into finished magnets. Nautiyal said the company expects to serve 20% of India’s total demand in the next three years, as the country’s requirement rises to around 15,000 tonnes per annum by 2030.

"The demand we foresee is humongous," he said, adding that the facility aligns closely with the Rs 34,000-crore National Critical Minerals Mission and the government’s planned incentive scheme for rare earths. "The commercial rationale for setting up such a facility already exists. But government support, through incentives, policy stability, and infrastructure, can accelerate this transition."

Nautiyal said Lohum is also preparing for an IPO by 2027 as part of its goal to become India’s largest producer of sustainable critical minerals across lithium, cobalt, nickel, and now rare earths. "Beyond China, only India has the scale, to build a full rare earth supply chain," he noted.