Japanese firm Proterial looks to India for making magnets

Bain Capital-backed Japanese firm Proterial Ltd is looking to manufacture rare earth magnets in India at a time when the country is battling the restrictions imposed by China on the exports of the critical component required in automobiles and electronic products.

- Ayaan Kartik

According to two people aware of the matter, the Japanese company wants to manufacture its flagship Neodymium Ferrite Boron (NdFeB) permanent magnets in the country as part of its NEOMAX brand, with multiple companies in India already looking for alternative supply chains.

"The company is exploring a plant in India where it can make the magnets. The rare earth oxides can be sourced from within India and outside," one of the persons aware of the matter said, adding that the Japanese leadership is currently discussing the proposal.

Currently, it has two plants in Japan and China, where it primarily manufactures rare earth magnets.

While its Japan unit capacity details are not available publicly, the Chinese plant produces more than 2,000 tonnes of permanent magnets.

In response to Mint's queries, Proterial said that its policy does not allow it to disclose investment considerations.