Midwest Energy to set up magnet plant

Hyderabad-based Midwest Energy is setting up India’s first sintered NdFeB magnet plant in Hyderabad at an initial investment of Rs 250 crore to build domestic capacity for a product India currently imports almost entirely. The plant is undergoing trial production with commercial production expected to begin by mid-October with an initial 500 MT/year capacity, sources said.The plant will manufacture magnets -- using manufacturing tech developed in-house -- for electric vehicle motors, wind turbines, smartphones, defence applications and MRI equipment, with sample testing underway with several EV and wind-energy companies.India currently imports almost 100% of its sintered rare earth permanent magnet requirements. Midwest Energy’s plant could eventually help replace around 15-20% of India’s import dependence over the next three to five years, sources added.At the initial 500-tonne scale, the company’s magnets are expected to be around 20-25% more expensive than Chinese imports. The company is also in the process of expanding its capacity to 5,000 tonnes by December 2027 at an investment of up to Rs 2,000 crore to help bring costs closer to Chinese levels.Alongside the rare-earth magnet business, the technology and clean energy arm of Midwest Business House also has a 1.2 GW battery energy storage system plant in Bengaluru that began commercial production in July this year.