WINDHOEK, July 30 – The Japan Organization for Metals and Energy Security (JOGMEC) will invest up to C$47.7 million ($33.9 million) in a Toyota Tsusho subsidiary developing a heavy rare earth mining project in Namibia, as Japan moves to strengthen its access to critical minerals amid tightening Chinese export restrictions.
JOGMEC and Toyota Tsusho announced that the investment will support the development of the Lofdal rare earth deposit in Namibia’s Kunene Region, a project that could become Japan’s first rare earth mine in Africa.
The investment forms part of Japan’s broader strategy to diversify supplies of critical minerals used in advanced manufacturing, electric vehicles and defence technologies as geopolitical tensions reshape global supply chains.
According to the partners, Toyota Tsusho established a special purpose company, TJ Namibia Rare Earths, to lead the development of the project.
The Lofdal deposit contains significant quantities of heavy rare earth elements, including dysprosium and terbium, which are essential components in the permanent magnets used in electric vehicle motors, wind turbines and defence equipment.
The project began in 2020 as a joint exploration initiative between JOGMEC and Canada’s Namibia Critical Metals.
Earlier this year, Toyota Tsusho joined the project through a competitive bidding process, acquiring part of JOGMEC’s option interest and becoming the project’s development partner.
The partners said they will now undertake a comprehensive feasibility study through TJ Namibia Rare Earths before targeting a final commercialisation decision during Japan’s fiscal year ending March 2027.
JOGMEC confirmed that it made its initial investment in the project on 23 July.
The investment comes as Japan seeks to reduce its dependence on Chinese supplies of rare earth materials following a series of export restrictions introduced by Beijing.
China imposed export controls on selected heavy rare earth elements and related magnets in April 2025, before tightening restrictions on exports to Japan in January and again twice in February, increasing concerns over supply security for manufacturers.
The Namibia project is expected to strengthen Japan’s long-term access to strategic minerals while reinforcing Namibia’s position as an emerging supplier of critical resources required for the global energy transition and high-tech manufacturing.
