With the spotlight on Japan with prime minister Narendra Modi on a five-day trip to that country, the focus has been on his pet projects including the Bullet train and public-private partnerships in infrastructure.

However, somewhat less known is that Modi and his Japanese counterpart Shinzo Abe are also expected to sign an agreement that will enable Japan to import mixed rare earth materials from Indian Rare Earths, a wholly-owned subsidiary of the Department of Atomic Energy.

These rare earths that combine uranium and thorium ores are used for making neodymium that is required for manufacturing electronic items such as professional loudspeakers and computer hard disks among other things.

A report in the Nikkei Business daily suggests that Toyota Tsusho, part of the Toyota Group, will use it to produce neodymium for electric and hybrid cars. Neodymium magnets are known to be some of the strongest permanent magnets and it is reported that the drive electric motors of a Toyota Prius require 1kg of neodymium per vehicle.

China reportedly produces over 90 percent of the world's rare earth metals. Japan has been keen to diversify its supplies after China's cuts in export quotas some years ago.