Japan's JOGMEC to invest up to $34 million in Toyota Tsusho rare earth venture in Namibia

TOKYO, July 30 (Reuters) - Japan Organization for Metals and Energy Security and Toyota Tsusho 8015.T said on Thursday that the former will invest up to 47.7 million Canadian dollars ($33.9 million) in a Toyota Tsusho unit developing a heavy rare earths project in Namibia.

The partners said the project could become Japan's first rare earth mine development in Africa and help strengthen supplies of critical minerals.

• The move comes as Japan seeks to diversify critical mineral supplies amid tightening Chinese export controls on heavy rare earths and related magnets, which are crucial for the defence and automotive industries.
• Japanese trading house Toyota Tsusho has established special purpose company TJ Namibia Rare Earths to develop the heavy rare earth deposit at the Lofdal area in Namibia's Kunene region, according to a joint statement.
• The project began in 2020 as a joint exploration venture between JOGMEC and Canada's Namibia Critical Metals NMI.V.
• Toyota Tsusho joined the project in March this year through a competitive bidding process, acquiring part of JOGMEC's option interest and becoming a development partner.
• The Lofdal deposit contains substantial heavy rare earth resources, including dysprosium and terbium, which are used in permanent magnets for applications such as automobile motors.
• State-owned JOGMEC and Toyota Tsusho will conduct a feasibility study through the new company and aim to make a final commercialisation decision in the fiscal year ending March 2027.
• JOGMEC made its initial investment on July 23.
• Beijing imposed export controls on some heavy rare earths and related magnets in April 2025, and tightened restrictions on exports to Japan in January and again twice in February.

($1 = 1.4050 Canadian dollars)