The company revealed via a statement that the selection was made through a public tender organized by the Japan Organization for Metals and Energy Security (JOGMEC), which is funding the project as part of a larger effort to guarantee long-term supplies of vital minerals.
Toyota Tsusho is a major arm of the larger Toyota Group, which sold a record 11.3 million vehicles globally in 2025, making it the world’s top-selling automaker for a sixth consecutive year, as seen on Reuters.
Toyota Tsusho will be initiated into the project through JOGMEC’s ownership position.
JOGMEC is a Japanese government independent administrative agency that seeks to secure stable resource supplies for Japan.
Per the statement, Toyota Tsusho’s involvement greatly increases the industrial backing for the Lofdal project.
The Japanese trade and industrial corporation is heavily involved in global supply chains and has vast experience developing, processing, and commercializing essential minerals.
It also runs rare earth processing and manufacturing plants in India, which strengthens its technical capabilities.
The Lofdal deposit is especially significant because it contains dysprosium and terbium, two rare earth elements that are in short supply and in high demand for the production of high-performance permanent magnets.
These magnets are widely employed in electric vehicles, renewable energy systems, and other cutting-edge technologies, fueling the worldwide energy transformation.
“We are extremely pleased to welcome Toyota Tsusho as a strategic partner in the Lofdal project through JOGMEC’s public tender process,” Darrin Campbell, President of Namibia Critical Metals, stated.
Toyota Tsusho is a globally respected leader in building supply chains for critical materials and advanced technologies,” he added.
Toyota Tsusho’s cooperation provides the project with not only technical experience, but also prospective access to downstream markets, such as direct off-take opportunities.
Globally, the Lofdal project is gaining traction as one of the most promising sources of dysprosium and terbium outside China.
Its growth could play an important role in diversifying supply chains and reducing reliance on a single dominant market, establishing Namibia as an emergent hub for crucial minerals linked 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.
Ownership structure and JOGMEC investment terms
Namibia Critical Metals owns 95% of the Lofdal project, with the remaining 5% designated for historically disadvantaged Namibians.
According to its agreement with the Japan Organization for Metals and Energy Security (JOGMEC), the agency would invest in stages to acquire stock in the project.
An initial C$3 million contribution in the first phase, followed by C$7 million in the second phase, will allow JOGMEC to achieve a 40% stake.
A further C$10 million investment in a third phase would boost its ownership by another 10%.
JOGMEC has the option of purchasing an additional 1% shareholding for C$5 million.
Aside from equity participation, the agency has the right of first refusal to fund the project through to full commercial production and to purchase the total output at market rates.
Importantly, the joint ownership of Namibia Critical Metals and Historically Disadvantaged Namibians is guaranteed to maintain a 26% carrying interest.
This precaution can be maintained with a C$5 million contribution to JOGMEC.
Furthermore, Namibia Critical Metals has the opportunity to expand its participation to up to 45% by contributing its proportionate share of money when the earn-in period ends.
Currently, JOGMEC has finished Term 2 and met the C$10 million expenditure requirement, earning 40% interest.
Of the $20,000,000 earn-in required to reach 50% interest, C$18,273,000 has been accepted as project funding thus far.
