Japan, Namibia sign rare earths exploration deal
- August 21, 2023
- Posted by: Quatro Strategies
- Categories: Africa, Asia Pacific, Mining & Metals, Rare Earths & Commodities
Japan has taken a significant step in its pursuit of diversifying its supply chain for critical minerals by signing an agreement with Namibia to jointly explore for rare earth minerals. This move is part of Japan’s broader strategy to reduce its reliance on China, which currently dominates the global supply of these essential minerals used in various industries, including electric vehicle (EV) batteries.
The agreement was signed between the Japan Organization for Metals and Energy Security (JOGMEC) and Namibia’s state-owned mining firm, Epangelo. While the details of the agreement have not been immediately disclosed, it marks a significant step forward in Japan’s efforts to secure a stable supply of rare earth minerals that are crucial for the manufacturing of EV batteries and other advanced technologies.
Yasutoshi Nishimura, Japan’s Minister for Economy, Trade and Industry, has been actively engaged in this initiative, visiting countries with substantial deposits of rare earths, including Namibia, Zambia, and the Democratic Republic of Congo. The goal is to establish a supply chain of critical minerals in Africa, allowing Japan to reduce its dependence on China for these essential resources.
One of the primary motivations behind Japan’s efforts to diversify its supply chain is to ensure the stability of resources needed for its growing electric vehicle industry. Rare earth minerals are integral to the production of EV batteries, as they are used in the creation of powerful and efficient magnets that play a crucial role in battery performance.
JOGMEC is already involved in a partnership with Namibia Critical Metals Inc. for the development of the Lofdal deposit in northwestern Namibia. This deposit is rich in yttrium and has the potential for substantial production of dysprosium and terbium, two valuable heavy rare earth elements. These elements are essential for creating the permanent magnets used in electric cars and renewable energy technologies like wind turbines.
Namibia itself has been proactive in securing partnerships for rare earth mineral supply. In 2022, the country signed an agreement to supply rare earth minerals to the European Union, further solidifying its position as an important player in the global supply chain for these critical resources.
Japan’s agreement with Namibia represents a significant stride toward establishing a more secure and diversified supply chain for rare earth minerals. As the world’s demand for electric vehicles and renewable energy technologies continues to rise, such initiatives become increasingly vital for the stability and sustainability of global industries.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
Trump’s tariffs signal a permanent shift in U.S. trade policy
The Trump administration’s sweeping trade tariff agenda has triggered a profound shift in the global economic order, prompting both confusion and debate among economists, markets, and even Trump’s own advisers. President Trump claims that tariffs will serve multiple purposes: reviving U.S. manufacturing, raising government revenue, restoring trade balance, and leveraging better deals with allies.
While some close to the administration support these aims, others view them as overly ambitious or contradictory. Despite internal disagreements, there’s a clear consensus among several Trump advisers: tariffs are here to stay. Even if trade deals are struck, they say, the post-negotiation landscape will still feature elevated U.S. tariffs as a structural feature of the new paradigm Trump is trying to create.
Germany mulls special account to ease burden of expanding electricity grid costs
Germany is considering the establishment of a special government account to distribute the costs of expanding its electricity network more equitably across generations, according to Economy Minister Robert Habeck. The expansion of the electricity grid is necessary due to the planned phase-out of fossil…
U.S. seeks to enlist South Korea in curbing China’s shipbuilding dominance
Washington’s move to tap Seoul as a strategic partner in countering China’s growing grip on global shipbuilding underscores how industrial policy is becoming an increasingly sharp tool in the geopolitical contest with Beijing. The comments from South Korea show that the U.S. is not merely focused on short-term trade concessions, but on forging longer-term coalitions to push back against China’s rise in key manufacturing sectors.
China overtook South Korea as the world’s top shipbuilder in the early 2010s, and now accounts for roughly 50% of global ship production by tonnage, compared with South Korea’s roughly 30%. China also dominates orders for certain vessel types, including bulk carriers and container ships, and is advancing quickly in LNG carrier technologies, a sector traditionally led by Korea.