• Toyota Tsusho joins Lofdal project as a key industrial partner

• Japan strengthens its position in a bid to secure critical minerals

• The project could offer an alternative to China’s rare earth supply

Japan seeks to strengthen its foothold in Namibia’s rare earth sector, as Namibia Critical Metals (NCMI) brings in Toyota Tsusho as a key industrial partner for its Lofdal project.

On March 17, NCMI announced the selection of the Japanese trading and industrial group as a strategic partner in the development of the Lofdal rare earth deposit. The move builds on Japan’s growing presence at the site, where the state-backed Japan Oil, Gas and Metals National Corporation (JOGMEC) already holds a 40% stake.

NCMI said Toyota Tsusho’s involvement comes through JOGMEC’s participation in the project. The company expects to benefit from Toyota Tsusho’s experience in developing critical minerals, as well as its potential role as a future buyer of Lofdal’s output. The Japanese group has operated a rare earth refining facility in India for more than a decade.

Darrin Campbell, president of NCMI, said the participation of Toyota Tsusho marks a major strategic milestone for the Lofdal project, noting that few rare earth projects globally benefit from such strong government backing and industrial leadership, and that the partnership strengthens Lofdal’s potential to become a sustainable supplier of critical heavy rare earths to global markets.

With estimated average annual production of 1,478 tons of total rare earth oxides (TREO), Lofdal is positioned as a potential alternative to Chinese supply, particularly for materials used in wind turbines and electric vehicles.

For Japan, which is seeking to reduce its reliance on China, expanding its role in the project reflects a broader strategy to secure access to critical mineral flows. It remains to be seen how Toyota Tsusho’s involvement will translate into concrete progress on the ground.

The project is still in the pre-construction phase, and further studies are needed to refine its development profile. No timeline has been announced. Total investment is estimated at $347.9 million.

Lofdal could also become an important source of mining revenue for Namibia. Around 5% of the project’s equity has been set aside for disadvantaged local communities.

Aurel Sèdjro Houenou