Toyota Deepens African Supply Chain With Namibia Rare Earths Investment
Toyota Tsusho is investing in a Namibian rare earth mining project to diversify its supply chain for electric vehicle motors. The investment, supported by Japan's JOGMEC, marks the company's first direct entry into African upstream mining.
Why it matters
This move is part of a broader global strategy by Japanese firms to reduce reliance on Chinese rare earth exports for the EV transition.
email facebook linkedin twitter Whatsapp Japan's JOGMEC will invest up to 5.5 billion yen ($33.8 million) in Toyota Tsusho's Namibian rare earth venture to advance the Lofdal project.
The investment marks Toyota Tsusho's first direct participation in developing an African rare earth mine, extending its presence beyond vehicle distribution through CFAO.
The project supports Japan's strategy to diversify supplies of heavy rare earths used in electric vehicle motors amid tighter Chinese export restrictions.
Japan Oil, Gas and Metals National Corporation (JOGMEC) announced on Thursday, July 30, that it will invest up to 5.5 billion yen ($33.8 million) in the vehicle established by Toyota Tsusho to continue developing the Lofdal rare earth project in Namibia. Consequently, Toyota Group's trading arm, which also owns African distribution group CFAO, has expanded its African footprint by moving directly into the upstream mining sector.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in