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
Despite rhetoric, China still needs U.S. chips to keep auto industry moving
At a recent electronics fair in Shanghai, Chinese semiconductor companies were out in force, showcasing their ambitions with bold slogans like “Offering complete domestic solutions” and “Use Chinese chips, love Chinese chips.” These catchphrases reflect Beijing’s push for technological self-reliance. But despite the patriotic marketing, China’s dependence on certain American semiconductors remains stark—especially in key industrial sectors like automotive manufacturing.
That reality was thrown into sharp relief in late April when China unexpectedly lifted its 125% retaliatory tariffs on eight categories of U.S.-made chips. The decision, which followed lobbying by major Chinese automakers, reveals how difficult it has been for China to reduce its reliance on foreign semiconductors, particularly in areas where domestic substitutes remain immature or untested.
South Korea and UAE strengthen economic ties with landmark trade agreement
South Korea and the United Arab Emirates solidified their trade relationship with a landmark agreement signed during a summit on Wednesday, aimed at significantly reducing import duties and fostering closer business and investment ties. President Yoon Suk Yeol’s office emphasized the special bond between the two…
China and India expand coal-heavy steel capacity, testing green alliances
Despite mounting international pressure to decarbonize heavy industry, new research reveals that a significant wave of high-emission steelmaking capacity is being added globally—primarily by India and China. Up to 303 million metric tons per year of new blast furnace capacity, the most polluting method of steel production, is currently planned or under construction. This signals a major setback in global efforts to green the steel sector, one of the world’s largest contributors to climate change.
Steelmaking accounts for roughly 11% of all global greenhouse gas emissions. And as demand for steel is projected to climb beyond 2 billion metric tons annually by the end of this decade, the path toward decarbonization is becoming more contested. While cleaner electric arc furnace (EAF) technologies—powered by electricity and often using recycled scrap—are expected to expand by 24% by 2030, this growth is being outpaced in terms of emissions impact.