Japanese Company Proterial Eyes Magnet and Advanced Materials Manufacturing in India

Japanese metals and advanced materials maker Proterial Ltd. is exploring plans to localise production in India of key components including rare earth magnets and other high-end materials as part of a broader strategy to diversify global supply chains and tap into rising demand in one of the world’s fastest-growing economies.

During a visit to India, Sean M Stack, Proterial’s global president and CEO, said the company is assessing potential manufacturing investments in India for products ranging from rare earth magnets — including those for electric vehicles that do not rely on heavy rare earth elements — to superalloys, advanced tooling materials, power electronics components and high-speed rail cables. The evaluation comes amid intensified global efforts to build resilience in critical technology supply chains and reduce dependency on China’s dominant role in rare earth processing.

Stack noted that although no final investment decision has been made, favourable incentive schemes at both central and state levels are encouraging Proterial to consider India as a key manufacturing location. The company already supplies magnet products to Indian customers from its bases abroad, and local production could address supply-chain security concerns while supporting India’s growing industrial and EV sectors.

In parallel, Proterial India — the local unit formerly known as Hitachi Metals India — is setting up the country’s first amorphous electrical steel manufacturing facility in Andhra Pradesh’s Sri City, producing advanced steel used in energy-efficient transformers. This move underscores the company’s broader commitment to expanding its footprint in India’s manufacturing ecosystem.

Industry analysts say Proterial’s India ambitions align with global trends of onshoring strategic manufacturing capabilities, particularly in critical materials and EV supply chains, as geopolitical and economic pressures prompt companies to seek alternative production hubs outside China.