New Delhi, Nov 26 (PTI) Rare earth magnets are being sourced from countries including China and Japan that have agreements with India, Union Minister Ashwini Vaishnaw said on Wednesday.

The minister said India plans to export surplus capacity once local production of rare earth magnets begins.

"All the countries with which we have agreements, it comes from those countries. Whether it is from China, whether it is from Japan, whether it is from Vietnam, Australia, Canada, and some US manufacturing is also being revised. It comes from all these places for the immediate requirement," Vaishnaw told reporters during a briefing on Cabinet decisions.

In April, China implemented strict export licensing on rare earth elements like terbium and dysprosium which are key inputs for high-performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics, automobile etc.

Rare earth magnets are vital for a number of sectors like electric vehicles, renewable energy, electronics, aerospace, and defence applications.

The Union Cabinet on Wednesday approved a Rs 7,280 crore scheme to promote the manufacturing of rare earth permanent magnets, a move which would help reduce India's dependence on China.

The 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPMs)' was approved at a Cabinet meeting chaired by Prime Minister Narendra Modi.

The total financial outlay of the scheme is Rs 7,280 crore, comprising sales-linked incentives of Rs 6,450 crore on REPM sales for five years and capital subsidy of Rs 750 crore for setting up 6,000 MTPA of REPM manufacturing facilities.

Vaishnaw said that the annual requirement of REPM in the country is around 4000 MTPA and India plans to export the surplus production as well.

He said that the entities that will produce the REPM will be set up in 2-3 years.

The minister said that India has an estimated 6.9 million tonnes of rare earth element reserves on the coastlines as well as in old mountains. PTI PRS PRS MR

Rare earth magnet manufacturing scheme approved with Rs 7,280 crore incentives to build 6,000 MTPA capacity. The Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPMs) with a Rs 7,280 crore outlay comprising Rs 6,450 crore in sales-linked incentives over five years and Rs 750 crore in capital subsidy to establish 6,000 MTPA of REPM manufacturing, targeting commissioning in two to three years, meeting an estimated 4,000 MTPA domestic requirement and enabling surplus exports.