Rare earths from Angola, refined in India, destined for Japan.
Mining company Pensana and Toyota Tsusho, a trading arm of the Toyota Group, have signed a non-binding memorandum of understanding (MoU) for the supply of rare earth elements. Under the agreement, up to 20,000 tonnes of mixed rare earth carbonate from Pensana’s Longonjo mine in Angola could be supplied annually for further processing to Toyota Tsusho’s subsidiary, Toyotsu Rare Earth India, which has been operating a refinery in India since 2013.
In addition to a supply agreement, both parties are exploring further collaboration opportunities throughout the entire rare earth value chain. The Longonjo project, owned by the UK-based Pensana, is currently under construction.
Should a binding agreement follow, Toyota Tsusho would strengthen its position against potential disruptions from its existing supply channels in India. Recent reports suggest that the Indian government may have directed India Rare Earths Limited (IREL), a state-owned mining company, to suspend a 13-year-old export agreement with Toyotsu (we reported). India, a rare earth producer itself, is reportedly aiming to stockpile critical resources and expand domestic processing capabilities to secure its own supply chain. However, no official confirmation of such government action has been issued so far.
Photo: lucian-comans-images via Canva
