Kia India Announces Major Investment of USD 2 billion in AP: Japan sought a steady supply of rare earth minerals

Kia Motors announced a major investment of USD 2 billion to set up a new manufacturing facility in Andhra Pradesh that will increase the South Korean automaker's annual production capacity to more than 6 lakh units.

This project is expected to create around 12,000 jobs and increase Kia India's annual production capacity to 630,000 vehicles. This was announced at the CII Partnership Summit being held at Visakhapatnam on Thursday by Gwanggu Lee, Managing Director and Chief Executive Officer, Kia India.

Lee, however, did not specify any timeline for the investment or by when the additional capacity would become operational.

Kia India already has a manufacturing facility in Anantapur, Andhra Pradesh, that it set up in 2017. It has an annual manufacturing capacity of 4.30 lakh units.

In the financial year 2026, the automaker produced 3.17 lakh units. It dispatched 2.89 lakh units in the domestic market and exported 27,953 units.

Meanwhile, a Japanese delegation led by Ambassador Keiichi Ono has urged the Andhra Pradesh government to ensure a steady supply of rare earth minerals to Japan.

The request was made during a meeting between Ono and Chief Minister N Chandrababu Naidu in Vizag on Wednesday, ahead of the CII Partnership Summit in Vizag on November 12 and 13.

“The Japanese representatives raised the issue of ensuring a steady supply of rare earth minerals to Japan. They said such cooperation would help further strengthen the India-Japan partnership in the supply of critical minerals,” said an official press release.

The diplomatic outreach aligns with the TDP-led government's push to develop the state's coastline into a 'Rare Earth Element Corridor'.

According to an official press note, State Mines Minister K Ravindra had recently highlighted that 16 kinds of mineral reserves have been identified in over 16,000 hectares in the state.

According to the Andhra Pradesh Mineral Development Corporation (APMDC), the state hosts the second-highest beach sand mineral reserves in India, accounting for nearly 25 per cent of these national resources.

These resources are particularly high in concentrations of ilmenite, rutile, zircon and monazite, which is a key source of rare earth elements (REEs),

Beach sand minerals are critical inputs across a range of high-value industries, from paints and aerospace components to nuclear fuel and permanent magnets used in electric vehicles and wind turbines.

Ilmenite and rutile are processed into titanium dioxide pigment and titanium metal, while monazite yields rare earth oxides essential for electronics and clean energy technologies.

Currently, India imports over 75 per cent of its titanium dioxide pigment requirements, with nearly two-thirds sourced from China, despite having some of the world’s largest titanium mineral reserves, said an official release.

Incidentally, rare earth magnets are a fast-growing opportunity as they are crucial for motors, renewable energy systems, defence equipment and consumer electronics.

In July, 2026, the Andhra Pradesh government had reserved an area of 12 sq km around three villages in Palnadu district for the Atomic Minerals Directorate for Exploration and Research, Department of Atomic Energy, to prospect for Rare Earth Elements (REE) and other associated critical minerals.

Further, the visiting Japanese delegation informed the Chief Minister that Proterial India was planning to manufacture ‘amorphous metal’ in India for the first time.

This material is used in the production of high-capacity transformers, said the release, adding that “with the industrial incentives offered by the state government, the company has drawn up plans to commence production at Sri City in December 2026.”

The Japanese delegates also said that a new Global Capability Centre (GCC) will be established in Visakhapatnam this year through India-Japan cooperation, leveraging the talent of Indian professionals.

The representatives also noted that Japan-based JERA had entered into a preliminary agreement with AM Green to procure around 70,000 tonnes of green ammonia annually from Kakinada for a period of five years.

They described the agreement as a significant step towards establishing a green ammonia supply chain between India and Japan, the release added.

ABOUT THE AUTHOR

Gowri V

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A Journey of Three Decades Time passes faster than we realise. What feels like a journey that began only yesterday has today grown into more than three decades of a meaningful and fulfilling life devoted to education, journalism, and the empowerment of young minds. My professional journey began with journalism training in New Delhi in 1979. I went on to work as an independent journalist, drawing on my fluency in both English and Telugu. Over the years, I have edited and worked on Telugu articles in both languages, an experience that strengthened my command of language and sharpened my understanding of society, people, and contemporary issues. Yet, my principal profession and enduring passion have always been teaching. My decision to become a teacher was not merely a career choice—it was a calling. Teaching offered me the rare privilege of inspiring young minds, guiding them through their formative years, and making a lasting difference in their lives. I found immense satisfaction in simplifying complex concepts, nurturing curiosity, encouraging independent thought, and building confidence among students. Every moment in the classroom—every question, every moment of discovery, and every spark of understanding—reminded me why I had chosen this path: to empower young people through knowledge, values, and essential life skills. My teaching career began at the grassroots level as a Montessori teacher and gradually progressed to the position of Vice Principal. I had the opportunity to work in reputed educational institutions, including Dilsukhnagar Public School in Hyderabad, where I shouldered both teaching and administrative responsibilities. Although I have always considered myself, at heart, a teacher, my administrative experience enabled me to understand and contribute to the education system from a much broader perspective. For my students, I have always tried to be an approachable and dependable presence—someone they could turn to not only for academic support, but also for guidance and emotional encouragement. At the same time, I developed a reputation as a firm disciplinarian who believed that integrity, fairness, responsibility, and discipline were fundamental to education. I was also consistently appreciated for maintaining clear communication with parents and staff and for ensuring that examinations and other academic processes were conducted with transparency, fairness, and efficiency. As my career progressed, however, I began to feel that academic education alone was not enough. This realization led me to work more closely with students following the SSC and CBSE curricula, while consciously bringing life-skills education into my teaching. I came to understand that education becomes truly meaningful when it prepares children not merely to pass examinations, but to face life. Teaching emotional resilience, self-reliance, social awareness, communication, decision-making, and other practical life skills often had a deeper and more lasting impact than academic achievement alone. I saw how these skills could help students navigate challenges with greater confidence, maturity, and responsibility. My academic background provided a strong foundation for this approach. My degree in Psychology from the University of Madras helped me develop a deeper understanding of young people's minds, their emotional needs, and the influence of their family and social environments. My M.A. in Telugu with First Class from Osmania University.

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