Canadian climate technology company Enervoxa is exploring India as the location for a large-scale rare earth processing facility and plans to hold discussions with major aluminium producers including Vedanta, Hindalco Industries and state-owned NALCO.

The proposed project, estimated to cost between $250 million and $350 million, aims to recover valuable rare earth elements from red mud, the industrial waste generated during aluminium production. The investment could be funded through a combination of strategic equity partnerships and project financing, with eastern India emerging as the preferred location.

The initiative comes at a time when governments and industries worldwide are seeking alternatives to China’s dominance in rare earth processing. These critical minerals are essential for manufacturing electric vehicle motors, smartphones, renewable energy technologies and advanced defence systems.

Although India possesses significant rare earth reserves and ranks among the world’s largest aluminium producers, it still lacks large-scale facilities capable of refining these minerals into high-purity products.

According to Enervoxa CEO Vandit Verma, the company has spent the past eight years developing a proprietary process that extracts rare earth concentrates from red mud while also recovering commercially valuable by-products such as iron oxide, titanium-bearing materials, pigments and water treatment coagulants.

Beyond partnering with aluminium producers, the company intends to collaborate with engineering firms, steel manufacturers and critical mineral processors to establish a comprehensive domestic value chain. It also plans to seek support from the Indian government for the project.

The proposal aligns with India’s broader efforts to strengthen its critical minerals ecosystem. Over the past six months, Vedanta has highlighted its aluminium production growth and corporate restructuring initiatives through regulatory disclosures, while NALCO announced a joint venture to establish a 1,080 MW captive thermal power plant to support future industrial expansion.

These developments underscore the sector’s continued focus on capacity enhancement, making India an attractive destination for Enervoxa’s rare earth processing ambitions.

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