IREL Eyes to Collaborate with Japan, South Korea for Rare Earth Magnet Production

State-owned IREL is in talks with Japanese and South Korean companies to start commercial production of rare earth magnets, as per news reports. The company is considering technology partnerships through government-level discussions and plans to seek board approval for the project later this year.

India’s Current Capabilities

India does not have commercial-scale facilities to separate and refine all rare earth elements to high-purity standards. IREL currently produces 400-500 metric tons of neodymium oxide annually, which could be supplied to a partner for magnet production. Output may be expanded depending on future agreements.

Engagement with Japanese Firms

As per reports, IREL has approached Toyotsu Rare Earths India, part of Toyota Tsusho, to connect with Japanese companies. An initial meeting was held to discuss possible collaboration. One proposal included the option of a Japanese manufacturer setting up a facility in India. 

Supply Chain Context

China controls the majority of global rare earth production. In April 2025, it suspended exports of a range of rare earth materials and magnets, affecting industries such as automobiles, aerospace, and semiconductors. This has pushed other countries to look for alternative supply arrangements.

Read more: Oil India and IREL Collaborate to Develop Rare Earth and Critical Minerals!

IREL Broader Expansion Plans

As per reports, alongside magnet production plans, IREL is looking at expanding its mining and processing operations within India. Rare earth mining in the country is limited to IREL, which supplies material for nuclear power and defence applications. The company is also exploring mining projects in Argentina, Australia, Malawi, and Myanmar.

In June 2025, the government asked IREL to suspend a rare earth export agreement with Japan that had been in place for 13 years, as per Reuters. This was aimed at conserving domestic supplies. 

Conclusion 

IREL’s talks with overseas companies remain at an early stage. Any commercial production will depend on board approval and final collaboration terms.

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