Namibia Critical Metals has moved forward with its Lofdal Heavy Rare Earths Project by naming Japan’s Toyota Tsusho Corporation as a strategic partner following a competitive selection process.
The announcement, made via an official statement, confirmed that Toyota Tsusho was chosen through a public tender conducted by the Japan Organization for Metals and Energy Security (JOGMEC), which is funding the project to ensure long-term access to critical minerals.
Toyota Tsusho operates as a key arm of the Toyota Group, which achieved record global vehicle sales of 11.3 million units in 2025, retaining its status as the world’s top-selling automaker for the sixth year in a row.
Under the agreement, Toyota Tsusho will participate in the Lofdal project through JOGMEC’s ownership position, gaining both equity and strategic involvement.
JOGMEC, an independent administrative agency of the Japanese government, focuses on securing stable resource supplies for Japan.
According to Namibia Critical Metals, Toyota Tsusho’s inclusion significantly enhances the industrial and technical support for the Lofdal initiative.
The Japanese company brings extensive experience in global supply chains, mineral development, processing, and commercialization. Its rare earth processing facilities in India further strengthen its technical capabilities for the project.
The Lofdal deposit is especially important as it contains dysprosium and terbium, rare earth elements in limited supply that are essential for producing high-performance permanent magnets.
These magnets are widely used in electric vehicles, renewable energy technologies, and other advanced systems, playing a crucial role in the global energy transition.
Darrin Campbell, President of Namibia Critical Metals, said, “We are extremely pleased to welcome Toyota Tsusho as a strategic partner in the Lofdal project through JOGMEC’s public tender process.”
He added that Toyota Tsusho is recognized globally for building supply chains for critical materials and advanced technology, bringing both technical expertise and potential access to downstream markets, including direct offtake opportunities.
The Lofdal project is emerging as one of the most promising sources of dysprosium and terbium outside China, with the potential to diversify supply chains and reduce dependence on a single dominant market. This development positions Namibia as an emerging hub for strategic minerals critical to future technologies.
“Toyota Tsusho’s involvement marks a major strategic milestone for Lofdal. Few rare earth projects benefit from a combination of government support and industrial supply chain leadership like this partnership,” Campbell said.
He added that the collaboration strengthens the prospects of Lofdal becoming a long-term supplier of heavy rare earth elements to global markets.
Regarding ownership, Namibia Critical Metals holds 95% of the Lofdal project, while the remaining 5% is allocated to historically disadvantaged Namibians.
Under its arrangement with JOGMEC, the agency invests in stages to acquire equity in the project. An initial contribution of C$3 million in phase one, followed by C$7 million in phase two, secured a 40% stake for JOGMEC.
A third-phase investment of C$10 million would increase its share by another 10%, and the agency has the option to acquire an additional 1% for C$5 million.
Beyond equity, JOGMEC retains the right of first refusal to fund the project through full commercial production and to purchase the total output at market prices.
The joint ownership between Namibia Critical Metals and historically disadvantaged Namibians guarantees a 26% carrying interest, which can be maintained with a C$5 million contribution to JOGMEC.
Namibia Critical Metals also has the option to increase its stake to 45% by contributing its share of funds at the end of the earn-in period.
Currently, JOGMEC has completed phase two, meeting the C$10 million investment requirement and securing 40% interest. Of the total C$20 million earn-in required for 50% ownership, C$18,273,000 has already been provided as project funding.