Entellus Industries: Pioneering Neodymium Metal Production in India

Company Overview

Entellus Industries was incorporated on August 20, 2022, by Simha Kumar and Nagarajan Mahadeven in Chennai. The company operates manufacturing facilities in Tamil Nadu and specializes in neodymium-praseodymium metal and neodymium-iron-boron alloy production.

The Rare Earth Supply Chain

The production of rare earth magnets involves three distinct stages: mining, magnet-making, and the middle stage of converting mined oxide into metal and then into alloy. India has deposits for mining and companies for magnet-making, but the middle stage, which is chemically and metallurgically difficult, is where the global bottleneck lies.

Entellus Industries’ Products and Processes

Entellus Industries’ products include NdPr metal, bonded powders, and strip-cast alloys, which serve different types of magnets. The company uses molten salt electrolysis to convert oxide into metal and employs automated vacuum melting and melt spinning to produce strip-cast alloy.

Funding and Expansion Plans

In January 2026, Entellus raised ₹50 crore in a round led by ZeroW, with ValPro acting as the transaction adviser. This funding will support the company's expansion into sintered alloys and increase its production capacity to 2,000 tonnes of magnets annually. The company had previously raised $12 million from Social Capital to fund its NdPr metal and bonded powder alloy plants in Tamil Nadu.

Government Support and Industry Context

The Indian government has approved a scheme to promote domestic manufacturing of sintered rare earth permanent magnets, allocating Rs 7,280 crore. This initiative aims to support India's electric vehicle and wind energy sectors, which currently rely on imported rare earth materials. Additionally, Indian companies are developing motors that avoid rare earth magnets altogether.

FAQs

**Q: What is Entellus Industries' main focus? A: Entellus Industries focuses on producing neodymium-praseodymium metal and neodymium-iron-boron alloy.

**Q: How much funding has Entellus Industries raised? A: Entellus Industries has raised about ₹155 crore, including ₹50 crore led by ZeroW in January 2026.

**Q: What are Entellus Industries’ expansion plans? A: The company plans to expand into sintered alloys and increase its production capacity to 2,000 tonnes of magnets annually.

Conclusion

Entellus Industries is making significant strides in India's rare earth metals sector by focusing on the middle stage of the supply chain. With substantial funding and government support, the company aims to reduce India's reliance on imported rare earth materials, thereby bolstering the nation's electric vehicle and wind energy sectors.

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