Namibia Critical Metals has selected Toyota Tsusho Corporation as a strategic partner for the Lofdal Heavy Rare Earths Project, a decision formalized through a public tender organized by the Japan Organization for Metals and Energy Security (JOGMEC).

Toyota Tsusho's involvement, facilitated by JOGMEC, brings significant industrial and technical expertise to the project, along with the potential for valuable market access.

The Lofdal deposit is particularly notable for its supply of dysprosium and terbium, rare earth elements that are essential for manufacturing high-performance magnets used in electric vehicles and renewable energy technologies.

This developing partnership positions the Lofdal project as a major potential non-Chinese source of these critical materials, supporting global efforts to diversify supply chains.

The company revealed in a statement that the selection was made through a public tender organized by JOGMEC, a Japanese government agency. JOGMEC is funding the project as part of a broader strategy to secure long-term supplies of vital minerals for Japan.

Toyota Tsusho, a core member of the wider Toyota Group, brings immense industrial credibility. The group sold a record 11.3 million vehicles globally in 2025, securing its position as the world's top-selling automaker for the sixth consecutive year, as reported by Reuters.

Toyota Tsusho will be integrated into the project through JOGMEC's ownership stake.

JOGMEC is an independent administrative agency of the Japanese government, tasked with ensuring stable resource supplies for the nation.

According to the statement, Toyota Tsusho's participation significantly enhances the industrial backing for the Lofdal project.

The Japanese trade and investment corporation is deeply embedded in global supply chains and possesses extensive experience in the development, processing, and commercialization of essential minerals. Its operational portfolio includes rare earth processing and manufacturing plants in India, further strengthening its technical capabilities.

The Lofdal deposit's strategic importance is underscored by its content of dysprosium and terbium. These two heavy rare earth elements are both scarce and in high demand for the production of high-performance permanent magnets, which are critical components in electric vehicles, renewable energy systems, and other cutting-edge technologies powering the global energy transition.

“We are extremely pleased to welcome Toyota Tsusho as a strategic partner in the Lofdal project through JOGMEC’s public tender process,” stated Darrin Campbell, President of Namibia Critical Metals. “Toyota Tsusho is a globally respected leader in building supply chains for critical materials and advanced technologies,” he added.

The collaboration with Toyota Tsusho not only injects technical expertise into the project but also opens potential access to downstream markets, including direct off-take opportunities.

On a global scale, the Lofdal project is gaining recognition as one of the most promising sources of dysprosium and terbium outside of China. Its successful development could play a vital role in diversifying global supply chains and reducing dependence on a single dominant market, establishing Namibia as an emerging hub for critical minerals essential to future technologies.

“Toyota Tsusho’s participation represents a major strategic milestone for the Lofdal project. Few rare earth development projects globally benefit from the combination of government strategic support and industrial supply chain leadership that this partnership represents,” Darrin Campbell continued. “This strengthens the pathway for Lofdal to become a long-term supplier of critical heavy rare earth elements to global markets,” the president added.

Namibia Critical Metals holds a 95% interest in the Lofdal project, with the remaining 5% reserved for Historically Disadvantaged Namibians.

According to its agreement with JOGMEC, the agency will invest in stages to acquire an equity stake in the project.

An initial C$3 million contribution in the first phase, followed by C$7 million in the second phase, enables JOGMEC to achieve a 40% stake.

A further C$10 million investment in a third phase would increase its ownership by an additional 10%.

JOGMEC also holds the option to purchase an additional 1% shareholding for C$5 million.

Beyond equity participation, the agency has the right of first refusal to fund the project through to full commercial production and to offtake the total output at market rates.

Importantly, the agreement ensures that the joint ownership of Namibia Critical Metals and Historically Disadvantaged Namibians can maintain a 26% carried interest. This position can be preserved with a C$5 million contribution to JOGMEC.

Furthermore, Namibia Critical Metals has the opportunity to increase its participation to up to 45% by contributing its proportionate share of funding after the earn-in period concludes.

Currently, JOGMEC has completed Term 2 and satisfied the C$10 million expenditure requirement, thereby earning its 40% interest. To date, C$18,273,000 of the total C$20,000,000 earn-in required to reach a 50% interest has been formally accepted as project funding.