Namibia Secures Global Auto Giant Toyota Tsusho Corporation for Landmark Rare Earths Project
Namibia is fast positioning itself as a key player in the global energy transition, following a major breakthrough in the development of its critical minerals sector. Namibia Critical Metals has officially announced the selection of Toyota Tsusho Corporation as a strategic partner for the highly anticipated Lofdal Heavy Rare Earths Project, marking a pivotal milestone in the project’s journey toward full-scale production.
The partnership, secured through a competitive international tender organized by the Japan Organization for Metals and Energy Security, underscores growing global demand for secure and diversified sources of rare earth elements. JOGMEC, a Japanese government-backed agency tasked with safeguarding long-term resource supply, is funding the project as part of a broader strategy to strengthen access to critical minerals essential for future technologies.
Toyota Tsusho’s selection brings world-class industrial expertise and global market reach to the Lofdal project. As a core member of the Toyota Group, which achieved a record-breaking 11.3 million vehicle sales in 2025, maintaining its position as the world’s top-selling automaker, the company offers deep experience in building resilient supply chains for advanced materials.
Its involvement is expected to significantly accelerate Lofdal’s development, enhancing both its technical capacity and commercial viability. Notably, Toyota Tsusho’s established rare earth processing operations, including facilities in India, further strengthen its ability to support the project from extraction through to global distribution.
At the heart of the Lofdal project lies a rich deposit of high-value heavy rare earth elements, particularly dysprosium and terbium, materials critical to the production of high-performance permanent magnets. These components are indispensable in electric vehicles, wind turbines, and other clean energy technologies driving the global shift toward sustainability.
Speaking on the partnership, Darrin Campbell, President of Namibia Critical Metals, described the development as transformative. He emphasized that Toyota Tsusho’s reputation and supply chain leadership will not only bolster the project’s technical foundation but also unlock downstream opportunities, including direct off-take agreements in key global markets.
The Lofdal project is already gaining international recognition as one of the most promising sources of heavy rare earth elements outside China. Its advancement is expected to play a crucial role in diversifying global supply chains, reducing overreliance on dominant producers, and positioning Namibia as a rising hub for future-facing mineral resources.
Strategic Investment Framework
Ownership of the Lofdal project remains firmly anchored in Namibia, with Namibia Critical Metals holding a 95% stake, while 5% is reserved for historically disadvantaged Namibians, ensuring inclusive participation in the country’s resource development.
Under its agreement with JOGMEC, a phased investment structure has been established. Initial funding of C$3 million, followed by C$7 million, has enabled JOGMEC to secure a 40% interest in the project. A further C$10 million investment would increase its stake to 50%, with an additional option to acquire a 1% shareholding for C$5 million.
Beyond equity participation, JOGMEC retains strategic rights, including first refusal to finance the project through to commercial production and to purchase its output at market rates, providing long-term stability and guaranteed market access.
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Importantly, Namibia Critical Metals and its local partners are guaranteed a 26% carried interest, safeguarding national and community stakes in the project. The company also retains the option to increase its ownership to as much as 45% by contributing proportionally at the end of the earn-in period.
To date, JOGMEC has completed its second investment phase, contributing over C$10 million and securing a 40% stake. Of the total C$20 million required to reach a 50% interest, approximately C$18.27 million has already been committed, highlighting strong financial momentum behind the project.
A Defining Moment for Namibia’s Mining Future
The entry of Toyota Tsusho into the Lofdal project represents more than just a partnership it signals growing international confidence in Namibia’s mineral potential and its role in powering the technologies of tomorrow.
With strong government-backed investment, world-class industrial collaboration, and a resource base critical to the clean energy transition, the Lofdal project is poised to become a cornerstone of Namibia’s economic transformation and a key contributor to the global supply of essential rare earth elements.
