Japan Exploring Rare Earth Supply Opportunities from Andhra Pradesh, India

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A Japanese delegation led by Ambassador Keiichi Ono has requested the Andhra Pradesh government to ensure a steady supply of rare earth minerals to Japan, highlighting opportunities to strengthen bilateral cooperation in critical mineral supply chains. The request came during a meeting between Ambassador Ono and Andhra Pradesh Chief Minister N. Chandrababu Naidu in Visakhapatnam ahead of the CII Partnership Summit, held on 12–13 November 2026. The Japanese representatives emphasised that a reliable supply of rare earth minerals would further strengthen the India-Japan partnership in critical minerals and support industrial development in both countries.

Andhra Pradesh Plans to Develop a Rare Earth Element Corridor

The Japanese delegation’s interest aligns with the Andhra Pradesh government’s initiative to develop the state’s coastline into a Rare Earth Element (REE) Corridor. State Mines Minister K. Ravindra recently highlighted that authorities have identified 16 types of mineral reserves across more than 16,000 hectares in Andhra Pradesh. According to the Andhra Pradesh Mineral Development Corporation (APMDC), the state holds the second-largest beach sand mineral reserves in India, accounting for nearly 25% of the country’s total resources. These reserves contain significant quantities of ilmenite, rutile, zircon and monazite. In particular, monazite serves as an important source of rare earth elements, which are essential for several advanced industrial applications.

Beach Sand Minerals Support High-Value Industries

Beach sand minerals are important raw materials for several high-value industries, including paints, aerospace, nuclear energy, electric vehicles and renewable energy. Ilmenite and rutile serve as key sources for producing titanium dioxide pigments and titanium metal. Meanwhile, monazite provides rare earth oxides used in electronics, clean energy technologies and permanent magnets.

India currently imports more than 75% of its titanium dioxide pigment requirements, with nearly two-thirds of these imports sourced from China, despite the country’s substantial titanium mineral reserves, according to the government release.

Rare earth magnets also represent a growing industrial opportunity. These magnets play a critical role in electric motors, renewable energy systems, defence equipment and consumer electronics. However, India’s dependence on imported rare earth materials and finished magnet products exposes domestic manufacturers to geopolitical uncertainties and supply chain disruptions.

APMDC Advances Development of Coastal Mineral Resources

To utilise these resources, APMDC has secured approvals for 10 major beach sand deposits across coastal districts, including Srikakulam, Vizianagaram, Visakhapatnam, Kakinada and Krishna. Additionally, in July 2026, the Andhra Pradesh government reserved an area of 12 sq km around three villages in Palnadu district for the Atomic Minerals Directorate for Exploration and Research under the Department of Atomic Energy. The area will be explored for rare earth elements and other associated critical minerals. These initiatives aim to strengthen mineral exploration, encourage domestic processing and create opportunities for downstream industries.

Japanese Company Plans Advanced Material Manufacturing in India

The Japanese delegation informed that Proterial India plans to manufacture amorphous metal in India for the first time. Amorphous metal is used in manufacturing high-capacity transformers and other advanced electrical equipment. According to the government release, the company plans to commence production at Sri City in December 2026, supported by industrial incentives offered by the Andhra Pradesh government. The delegation announced plans to establish a new Global Capability Centre (GCC) in Visakhapatnam during 2026 through India-Japan cooperation. The centre will leverage the expertise and talent of Indian professionals.

JERA and AM Green Advance Green Ammonia Partnership

The discussions also highlighted growing cooperation between India and Japan in the clean energy sector. Japanese energy company JERA has entered into a preliminary agreement with AM Green to procure approximately 70,000 tonnes of green ammonia annually from Kakinada for five years. The proposed agreement represents an important step towards establishing a green ammonia supply chain between the two countries and expanding opportunities in low-carbon energy.

Strengthening India-Japan Industrial and Strategic Cooperation

Japan’s interest in Andhra Pradesh’s rare earth resources highlights the state’s growing importance in global critical mineral supply chains. With substantial beach sand mineral reserves, expanding exploration activities and investments in advanced manufacturing and clean energy, Andhra Pradesh is positioning itself as an important destination for strategic industrial partnerships. As reported by money.rediff.com, the proposed rare earth cooperation, alongside investments in advanced materials, green ammonia and technology services, could further strengthen India-Japan economic relations and create new opportunities across manufacturing, energy and critical mineral processing.