Japan has formally requested the Andhra Pradesh government to secure a stable supply of rare earth minerals, a move aimed at bolstering the India-Japan partnership in critical mineral supply chains and clean energy technologies. The request was made during a recent meeting between Japanese Ambassador Keiichi Ono and Andhra Pradesh Chief Minister N Chandrababu Naidu in Visakhapatnam.
This initiative comes as India seeks to reduce its heavy reliance on imports for vital materials such as titanium dioxide pigments and rare earth magnets, which are essential for various advanced industries. The current import dependency leaves manufacturers vulnerable to geopolitical tensions and supply chain disruptions.
Andhra Pradesh: A Future Rare Earth Element Corridor
Andhra Pradesh is actively working to transform its extensive coastline into a 'Rare Earth Element Corridor.' The state government plans to leverage its significant beach sand mineral reserves to attract investment and foster domestic manufacturing capabilities. According to the Andhra Pradesh Mineral Development Corporation (APMDC), the state holds nearly 25 percent of India's beach sand mineral resources, making it the country's second-largest repository.
These reserves include important minerals like ilmenite, rutile, zircon, and monazite. Monazite, in particular, is a crucial source of rare earth elements that are indispensable for manufacturing permanent magnets used in electric vehicles, wind turbines, aerospace components, and defense equipment, as well as in paints, electronics, and nuclear energy.
Strategic Exploration and Investment
The APMDC has already secured approvals for ten major beach sand deposits across key districts including Srikakulam, Vizianagaram, Visakhapatnam, Kakinada, and Krishna. Furthermore, in July 2026, the state earmarked 12 square kilometers in Palnadu district for the Atomic Minerals Directorate for Exploration and Research (AMD) to explore for rare earth elements and other associated critical minerals.
Beyond mineral extraction, the Japanese delegation explored broader investment opportunities within Andhra Pradesh. Proterial India, for instance, is set to commence manufacturing amorphous metal—a component vital for high-capacity transformers—at Sri City by December 2026. Additionally, a new Global Capability Centre, a product of India-Japan cooperation, is slated for establishment in Visakhapatnam this year.
Clean Energy Collaboration
In the clean energy sector, Japan-based JERA has entered into a preliminary agreement with AM Green to annually procure approximately 70,000 tonnes of green ammonia from Kakinada for a period of five years. This highlights a growing partnership in sustainable energy solutions.
Chief Minister Naidu also sought Japanese industry support for skill development and training programs aimed at empowering the state's youth. He emphasized Andhra Pradesh's transparent industrial incentive policy and an escrow-based mechanism designed to ensure timely incentive disbursement, thereby enhancing the ease of doing business for investors.