Japan Backs $34 Million Rare Earths Venture in Namibia to Diversify Supply Chains

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Japan’s state-backed energy and mining agency is investing up to C$47.7 million ($34 million) in a Namibian heavy rare earths project, accelerating efforts by major industrial economies to reduce their dependence on Chinese critical mineral supply chains.

The state-owned Japan Organization for Metals and Energy Security (JOGMEC) has taken an equity stake in TJ Namibia Rare Earths, a special purpose vehicle established by Japanese trading house Toyota Tsusho Corp. to develop the Lofdal Heavy Rare Earth Project in northern Namibia. The deal marks Tokyo’s first rare earth mine development initiative in Africa.

The joint venture plans to complete a definitive feasibility study before taking a final investment decision in Japan’s 2026 financial year, which ends in March 2027.

The push comes as Beijing tightens export restrictions on heavy rare earths and related permanent magnet technology critical components used in electric vehicles, wind turbines, robotics, and advanced military applications. The Lofdal deposit holds significant concentrations of dysprosium and terbium, two highly sought-after elements where global supply remains heavily concentrated in China.

“The project could become Japan’s first rare earth mine development in Africa and help strengthen supplies of critical minerals,” JOGMEC and Toyota Tsusho said in a joint statement detailing the transaction.

Originally launched in 2020 as an exploration partnership between JOGMEC and Canada’s Namibia Critical Metals, the project expanded when Toyota Tsusho acquired a portion of JOGMEC’s interest through competitive bidding to serve as the project’s primary commercial partner.

For Namibia, the capital injection solidifies its position as a primary African destination for clean-energy and strategic mineral investments. The Southern African nation has seen surging international interest across its uranium, lithium, copper, and rare earths reserves as global manufacturers scramble to secure ethically sourced raw materials.