Japan is investing in Namibia’s rare earth sector as Tokyo seeks new sources of minerals used in electric vehicles, defense equipment and advanced technologies.

The Japan Organization for Metals and Energy Security (JOGMEC) and Toyota Tsusho Corp. said Thursday that JOGMEC 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 investment marks a major step toward developing what could become Japan’s first rare earth mine in Africa, as countries race to secure reliable supplies of critical minerals outside China.

The project comes as Japan works to strengthen its supply chains after China tightened export controls on heavy rare earth elements and related magnets, materials that are essential for industries ranging from automotive manufacturing to defense technology.

Namibia rare earth project gains Japanese backing

Toyota Tsusho has created a special purpose company, TJ Namibia Rare Earths, to develop the heavy rare earth deposit at the Lofdal area in Namibia’s Kunene region.

The Lofdal deposit contains significant resources of dysprosium and terbium, two heavy rare earth elements used in permanent magnets that power electric vehicle motors and other high-performance technologies.

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.

The project began in 2020 as a joint exploration venture between JOGMEC and Canada-based Namibia Critical Metals. Toyota Tsusho joined the development in March after winning a competitive bidding process and acquiring part of JOGMEC’s option interest.

Japan looks beyond China for critical minerals

Japan’s move into Namibia reflects growing concern among governments and manufacturers over access to rare earth supplies. China remains the world’s largest producer and processor of rare earth materials, giving Beijing significant influence over global supply chains.

China introduced export controls on some heavy rare earths and related magnets in April 2025 and later tightened restrictions affecting Japan. The measures have increased pressure on countries to develop alternative sources of minerals needed for advanced manufacturing.

For Namibia, the project adds to efforts to attract investment into its mining sector and develop resources linked to the global shift toward electric vehicles and renewable energy technologies.

Toyota Tsusho expands resource development role

Toyota Tsusho Corp. is a Japanese trading company and a member of the Toyota Group, with operations spanning automotive, metals, energy, chemicals, machinery and infrastructure.

The company works with partners around the world to secure resources and support industrial projects.

Through its involvement in the Lofdal project, Toyota Tsusho is expanding its role in the supply of minerals needed for next-generation technologies while supporting Japan’s efforts to build more resilient critical mineral networks.

JOGMEC, Japan’s state-backed resource agency, made its initial investment in the project on July 23.

The partners said the feasibility work will determine the next stage of development as they evaluate the commercial potential of Namibia’s rare earth resources.