Japan eyes Andhra Pradesh's rare earth minerals to strengthen critical mineral supply chain

Japan eyes Andhra Pradesh's rare earth minerals to strengthen critical mineral supply chain

India remains heavily dependent on imports for titanium dioxide pigments and rare earth magnets, leaving manufacturers vulnerable to geopolitical tensions and supply chain disruptions

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Japan has urged the Andhra Pradesh government to ensure a steady supply of rare earth mineralsJapan has urged the Andhra Pradesh government to ensure a steady supply of rare earth minerals
Business Today Desk
  • Nov 13, 2026,
  • Updated Nov 13, 2026 6:52 PM IST

Japan has urged the Andhra Pradesh government to ensure a steady supply of rare earth minerals, as India and Japan look to strengthen cooperation in critical minerals and clean energy technologies, as reported by news agency PTI.

The request was made during a meeting between Japanese Ambassador Keiichi Ono and Andhra Pradesh Chief Minister N Chandrababu Naidu in Visakhapatnam on Wednesday, ahead of the CII Partnership Summit held on November 12 and 13.

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According to an official Andhra Pradesh government release, the Japanese delegation highlighted the importance of securing a reliable supply of rare earth minerals to strengthen the India-Japan partnership in critical mineral supply chains.

READ THIS: India now makes more steel than US and Japan combined. Anand Mahindra says: 'Simply incredible'

The development comes as the state government seeks to transform its coastline into a ‘Rare Earth Element Corridor’, tapping its extensive beach sand mineral reserves to attract investment and support domestic manufacturing.

Andhra Pradesh accounts for nearly 25 per cent of India's beach sand mineral resources, making it the country's second-largest repository of these minerals, according to the Andhra Pradesh Mineral Development Corporation (APMDC). The state's reserves include ilmenite, rutile, zircon and monazite, the latter being an important source of rare earth elements.

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These minerals are used across several industries, including aerospace, paints, electronics, nuclear energy and renewable power. Rare earth elements are particularly important for manufacturing permanent magnets used in electric vehicles, wind turbines and defence equipment.

India remains heavily dependent on imports for titanium dioxide pigments and rare earth magnets, leaving manufacturers vulnerable to geopolitical tensions and supply chain disruptions. The state government is looking to leverage its mineral resources to strengthen domestic production and meet growing industrial demand.

APMDC has secured approvals for 10 major beach sand deposits across Srikakulam, Vizianagaram, Visakhapatnam, Kakinada and Krishna districts. In July 2026, the state also reserved 12 square kilometres in Palnadu district for the Atomic Minerals Directorate for Exploration and Research to explore rare earth elements and associated critical minerals.

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ALSO READ: Japan may use Indian test sites to train with long-range missiles, drones

Beyond mining, the Japanese delegation discussed several investment opportunities in Andhra Pradesh. Proterial India plans to manufacture amorphous metal, used in high-capacity transformers, at Sri City, with production expected to begin in December 2026.

The delegation also informed Naidu that a new Global Capability Centre would be established in Visakhapatnam through India-Japan cooperation this year.

In the clean energy sector, Japan-based JERA has entered into a preliminary agreement with AM Green to procure around 70,000 tonnes of green ammonia annually from Kakinada for five years.

During the meeting, Naidu sought Japanese industry support for skill development and training programmes for the state's youth. He also highlighted the government's transparent industrial incentive policy and escrow-based mechanism to ensure timely disbursement of incentives and improve the ease of doing business.

Japan has urged the Andhra Pradesh government to ensure a steady supply of rare earth minerals, as India and Japan look to strengthen cooperation in critical minerals and clean energy technologies, as reported by news agency PTI.

The request was made during a meeting between Japanese Ambassador Keiichi Ono and Andhra Pradesh Chief Minister N Chandrababu Naidu in Visakhapatnam on Wednesday, ahead of the CII Partnership Summit held on November 12 and 13.

Advertisement

According to an official Andhra Pradesh government release, the Japanese delegation highlighted the importance of securing a reliable supply of rare earth minerals to strengthen the India-Japan partnership in critical mineral supply chains.

READ THIS: India now makes more steel than US and Japan combined. Anand Mahindra says: 'Simply incredible'

The development comes as the state government seeks to transform its coastline into a ‘Rare Earth Element Corridor’, tapping its extensive beach sand mineral reserves to attract investment and support domestic manufacturing.

Andhra Pradesh accounts for nearly 25 per cent of India's beach sand mineral resources, making it the country's second-largest repository of these minerals, according to the Andhra Pradesh Mineral Development Corporation (APMDC). The state's reserves include ilmenite, rutile, zircon and monazite, the latter being an important source of rare earth elements.

Advertisement

These minerals are used across several industries, including aerospace, paints, electronics, nuclear energy and renewable power. Rare earth elements are particularly important for manufacturing permanent magnets used in electric vehicles, wind turbines and defence equipment.

India remains heavily dependent on imports for titanium dioxide pigments and rare earth magnets, leaving manufacturers vulnerable to geopolitical tensions and supply chain disruptions. The state government is looking to leverage its mineral resources to strengthen domestic production and meet growing industrial demand.

APMDC has secured approvals for 10 major beach sand deposits across Srikakulam, Vizianagaram, Visakhapatnam, Kakinada and Krishna districts. In July 2026, the state also reserved 12 square kilometres in Palnadu district for the Atomic Minerals Directorate for Exploration and Research to explore rare earth elements and associated critical minerals.

Advertisement

ALSO READ: Japan may use Indian test sites to train with long-range missiles, drones

Beyond mining, the Japanese delegation discussed several investment opportunities in Andhra Pradesh. Proterial India plans to manufacture amorphous metal, used in high-capacity transformers, at Sri City, with production expected to begin in December 2026.

The delegation also informed Naidu that a new Global Capability Centre would be established in Visakhapatnam through India-Japan cooperation this year.

In the clean energy sector, Japan-based JERA has entered into a preliminary agreement with AM Green to procure around 70,000 tonnes of green ammonia annually from Kakinada for five years.

During the meeting, Naidu sought Japanese industry support for skill development and training programmes for the state's youth. He also highlighted the government's transparent industrial incentive policy and escrow-based mechanism to ensure timely disbursement of incentives and improve the ease of doing business.

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