Ashvini Rare Earth unveiled India’s first facility for producing Neodymium–Praseodymium (Nd-Pr) metal from Nd-Pr oxide in Pune in October this year. Nd-Pr metal is a critical input for manufacturing permanent magnets used across electric vehicles, wind turbines, electronics, and defence applications.
At full utilisation, the facility has the potential to meet nearly 25% of India’s Nd-Pr metal requirements. However, with no visibility on firm orders, the 15-tonne-per-annum plant is yet to begin commercial production.
Vikram Dhoot, managing director of Ashvini Rare Earth, is now focuing on building domestic magnet manufacturing capacity and enabling other magnet makers to commence production. This will allow the plant to generate revenues through the sale of Nd-Pr metal.
Bridging the Gap
Dhoot is also exploring partnerships with large industry players to leverage Ashvini’s technical expertise and establish a 600-TPA Nd-Pr metal plant under the government’s incentive schemes. Should these plans not materialise, Ashvini intends to set up a smaller, end-to-end magnet manufacturing line capable of producing 100 kg per day of high-coercivity EV-grade magnets using the high-purity metal produced in-house. Dhoot estimates this transition could take approximately 18 months. His son, Anuj has joined the business and both are working together to make the indigenous magnets.
A key challenge lies in sourcing magnet manufacturing equipment, much of which is controlled by Chinese suppliers. Alternative imports from Japan, the US, or Europe are three to four times more expensive, rendering the business economically unviable. If Ashvini proceeds independently, Dhoot plans to address this constraint through innovative engineering approaches, potentially drawing on India’s extensive domestic engineering capabilities.
The commissioning of the Nd-Pr metal facility marked India’s entry into rare-earth metal production outside China, placing the country among a select group globally with the capability to produce this strategic material. The project was realised through a collaboration that combined the research expertise of Bhabha Atomic Research Centre (BARC), the resource base of Indian Rare Earths Limited (IREL), and the industrial execution capabilities of Ashvini Rare Earth. The plant was established under a Memorandum of Agreement with BARC and IREL to produce Nd-Pr metal from indigenous rare-earth resources and was further accelerated through a grant from the Ministry of Mines and the Jawaharlal Nehru Aluminium Research Development and Design Centre.
China Challenge
Magnet manufacturing is highly capital-intensive, and Dhoot acknowledges that Ashvini cannot participate in the government incentive scheme on its own. The company is therefore in discussions with investors, either strategic partners or joint-venture collaborators with experience in scaling industrial operations. “We are looking for a partner who can help us scale and add strategic value,” says Dhoot.
Five years ago, Ashvini had attempted to raise capital but failed to attract interest from large business houses, OEMs, or Tier-1 suppliers, who saw little commercial rationale in competing against a China-dominated industry. The situation has since changed. Following the rare-earth magnet supply crisis and China’s tightening grip on global supply chains, investor interest has grown significantly. Ashvini is hopeful of securing an investor in the near future, though project costs have risen eight to tenfold in the interim.
Dhoot remains concerned that many potential investors seek quick returns and underestimate the complexity and long gestation period of deep-technology manufacturing. “They expect returns within months, whereas it could take three years for meaningful outcomes,” he says, adding that the company is seeking patient, risk-tolerant capital. While the production-linked incentive (PLI) scheme is expected to attract long-term investments, Ashvini will continue to move forward independently until such support materialises.
Ashvini Magnets, the group’s flagship company, is India’s largest manufacturer of injection-moulded and bonded magnets, commanding nearly 80% market share. Ashvini Rare Earth is its sister concern, established to indigenously develop NdFeB (Neodymium-Iron-Boron) magnet production.
Founded in a 100-sq-ft garage in 1984 by the late Ajit Dhoot, Ashvini developed India’s first bonded ferrite magnet in 1988. Growing demand led to expansion into a 1,000-sq-ft facility and the commencement of bonded rare-earth magnet manufacturing in 1994. Over time, the company transitioned from manual processes to semi-automated systems and then to fully automated systems specialised in bonded ferrite and bonded rare-earth magnets, including NdFeB and Samarium-Iron-Nitride (SmFeN), from its facility in Hinjewadi.
Today, Ashvini manufactures permanent magnets for a wide range of applications, including small motor rotors, energy-efficient ceiling fan motors, pumps, automotive systems, and sensors.