Japan seeks to bolster its critical mineral supply chains.
Toyota Tsusho Corporation, the trading arm of the Toyota Group, said on Wednesday it will participate as a joint development partner in a rare earth project in Namibia led by the Japan Organization for Metals and Energy Security (JOGMEC), as Japan moves to strengthen supply chains for critical minerals.
The project, located in Namibia’s Lofdal region, focuses on heavy rare earth elements, including dysprosium and terbium. These elements are essential components to manufacture high-performance permanent magnets used in electric vehicles, wind turbines, and advanced electronics. Exploration has been underway since 2020, and a preliminary feasibility assessment was completed earlier this year.
Toyota Tsusho is a major Japanese trading house involved in metals, energy, chemicals, and automotive supply chains, and has existing operations in rare earth refining and magnet materials used in electric vehicles and industrial equipment. The firm will join the commercialization study and may take over part of JOGMEC’s equity options, with a final investment decision expected by mid-2026.
JOGMEC, a Japanese government-backed agency tasked with securing stable supplies of energy and mineral resources for the country, has been promoting overseas resource development projects since the 2010s to reduce Japan’s dependence on a limited number of suppliers. The Namibia project also follows a 2023 cooperation agreement between Japan and Namibia on rare-earth exploration and supply-chain development.
Photo: Aleksander Tumko