Japan’s Japan Organization for Metals and Energy Security (JOGMEC) will invest up to 47.7 million Canadian dollars (about $34 million) in a Toyota Tsusho subsidiary developing a heavy rare earths project in Namibia, strengthening Japan’s efforts to secure critical mineral supplies outside China. According to Reuters, the investment will support TJ Namibia Rare Earths, a special purpose company established by Toyota Tsusho to develop the Lofdal heavy rare earth deposit in Namibia’s Kunene Region. The partners said the project could become Japan’s first rare earth mining development in Africa and play a key role in diversifying supplies of minerals essential to advanced manufacturing.
The Lofdal project contains significant deposits of dysprosium and terbium, heavy rare earth elements used in high performance permanent magnets for electric vehicles, wind turbines and defence technologies. The project began in 2020 as a joint exploration venture between JOGMEC and Canada’s Namibia Critical Metals, with Toyota Tsusho joining as a strategic development partner earlier this year after acquiring part of JOGMEC’s option interest. The investment follows tighter Chinese export controls on heavy rare earths and reflects Japan’s broader strategy to strengthen resilient and diversified supply chains for critical minerals.
The investment reinforces Namibia’s growing importance in the global critical minerals market as countries compete to secure resources vital to the energy transition and advanced technologies. For businesses and investors, the project highlights increasing international confidence in Africa’s mining sector and the continent’s role in supplying strategic minerals required for electric mobility, renewable energy and industrial manufacturing. It also strengthens economic ties between Japan and Namibia while supporting the development of downstream value chains beyond traditional mining activities.
Looking ahead, the Lofdal project is expected to advance toward a final investment decision following the completion of feasibility studies and regulatory approvals. If successfully developed, it could become a significant new source of heavy rare earths for Japanese industry while reinforcing Namibia’s position as an emerging hub for critical minerals investment in Africa.
