Toyota subsidiary joins Namibia rare earth project after successful bid

Japan's Toyota Tsusho has been brought on as a partner in developing a heavy rare earth project in Namibia.

The company - the global trading and industrial supply chain arm of the Toyota Group, won the bid through a public tender organised by the Japan Organization for Metals and Energy Security (JOGMEC), which is funding the venture.

The Lofdal Project will be exploiting a deposit rich in dysprosium and terbium, rare earths that are key for high-performance magnets in electric vehicles and renewable energy technologies.

The introduction of Toyota Tsusho as a strategic partner further strengthens the industrial foundation of the venture, said Namibia Critical Metals Inc in a statement.

Lofdal is the Canada-based mineral exploration and development company's flagship project.

The partnership with Toyota Tsusho positions the project as a global heavy earth supply hub, said Namibia Critical Metals, presenting a major potential non-Chinese source of these key materials.

This investment is a great opportunity for Namibia, says Tribe Africa Advisory's Rutendo Hwindingwi.

"The price for dysprosium per kilogram is aout $900, so it's not cheap... and the investment in the infrastrucutre required to harvest it out of the ground, is also costly from a mining perspective."

Namibia Criticial Minerals highlighted the fact that few rare earth development projects globally benefit from the combination of government strategic support and industrial supply chain leadership that this partnership represents.

"This strengthens the pathway for Lofdal to become a long-term supplier of critical heavy rare earth elements to global markets.”

Scroll up to the audio player to listen to Hwindingwi's wrap of the top African business stories (Namibia discussion at 6:48)