Lohum launches Rs 500 cr rare earth element magnet production facility in UP

New Delhi, Nov 10 (PTI) Recycling player Lohum on Monday announced the launch of a rare earth element magnet production facility set up at an investment of Rs 500 crore in Uttar Pradesh.

The plant will have a production capacity of 2,000 metric tonnes.

"The facility, which has been established with an investment of Rs 500 crore, marks a transformational step toward building India's self-reliance in rare earth magnets and critical minerals. The facility will refine and produce both light and heavy rare earth elements, key for advanced technology, electric mobility, renewable energy, aerospace, defense, electronics; and more," a company statement said.

Lohum said the investment is aligned with Government initiatives, including the National Critical Mineral Mission (NCMM), the Extended Circular Mineral Strategy (ECMS) by MeitY, 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.

Lohum Founder & CEO Rajat Verma said, "This facility addresses a critical gap in India's manufacturing value chain. Rare earth elements are foundational to our nation's clean energy ambitions and strategic industries. By establishing domestic production capabilities, we're not only reducing import dependence but creating a resilient, sustainable supply chain that will support India's growth for decades to come." "LOHUM's REE facility represents the kind of strategic domestic capacity-building essential for India's industrial growth and strategic autonomy. This is vital for achieving our Viksit Bharat goals," said Amitabh Kant, Former G20 Sherpa of India and Former CEO, NITI Aayog, who attended the launch event.

Once fully operational, the facility is projected to meet up to 20 per cent of India's rare earth magnet demand by 2027, directly contributing to EV manufacturing, renewable energy systems, and national defence applications. PTI ABI MR