- Toyota Tsusho joins JOGMEC in Namibia rare earth project to assess commercialization feasibility
- Project targets critical heavy rare earth elements for electric vehicle motor production
Toyota Tsusho Corporation has announced its participation in a rare earth exploration initiative in Namibia, marking a strategic move to strengthen material supply chains for electric mobility. The company will collaborate with Japan Organization for Metals and Energy Security (JOGMEC) as a joint development partner. This step reflects increasing industry focus on securing access to critical minerals essential for electrified vehicle technologies.
Strategic Collaboration for Resource Development
Under the agreement, Toyota Tsusho will take over a portion of JOGMEC’s option rights in the project and jointly conduct a commercialization feasibility study. The initiative builds on ongoing exploration activities and aims to determine the economic and technical viability of extracting rare earth elements. A final investment decision is expected by the end of fiscal year 2026, depending on study outcomes and prevailing market conditions.
Project Background and Exploration Progress
The exploration project has been underway since 2020 in Namibia’s Lofdal region, located in the Kunene Province. It is being conducted in partnership with Canada-based Namibia Critical Metals Inc. Initial exploration confirmed the presence of valuable heavy rare earth elements, which are less abundant but crucial for advanced technological applications. Subsequent phased studies have helped refine resource estimates and assess development potential.
Key Rare Earth Elements Identified
The project has identified several critical materials that are vital for modern electrification systems, particularly in automotive applications.
- Dysprosium used for high-temperature resistant magnets
- Terbium applied in improving magnetic performance
- Heavy rare earth elements critical for EV motor efficiency
Importance for Electric Vehicle Supply Chains
Heavy rare earth elements play a key role in the production of permanent magnets used in electric vehicle motors. These magnets enable higher efficiency, improved thermal stability, and compact motor design. As demand for electrified vehicles rises globally, ensuring stable access to such materials has become a strategic priority for automotive supply chains and component manufacturers.
Commercialization Timeline and Outlook
Following multiple stages of exploration and technical evaluation, JOGMEC completed a preliminary feasibility study in January 2026. The next phase will involve detailed assessments in collaboration with Toyota Tsusho. Based on the findings and broader business conditions, both organizations will decide on full-scale commercialization by March 2027. This timeline aligns with growing global efforts to diversify rare earth sourcing and reduce supply risks.
The Namibia project highlights a broader shift toward securing upstream resources to support electrification growth. By investing in rare earth exploration, Toyota Tsusho is positioning itself to contribute to a more resilient and sustainable supply chain for future mobility solutions.
Click above to visit the official source.