Africa’s ambitions to earn more from its vast critical mineral reproved about C$11 million ($7.8 million) to advance processing at its Lofdal rare earth project, signalling a gradual shift away from simply exporting raw minerals
Namibia’s Lofdal rare earth project is advancing plans to produce higher-value rare earth carbonates as Africa seeks to capture more value from its critical minerals.
- Namibia Critical Metals will invest about $7.8 million (C$11 million) to advance processing at its Lofdal rare earth project.
- The move aims to produce higher-value rare earth carbonates instead of exporting raw concentrate.
- It reflects a wider push across Africa to capture more value from critical minerals as global demand accelerates.
- However, the continent still remains far from the lucrative production of rare earth metals and permanent magnets.
The funding, approved by the project’s Joint Management Committee, will support the next phase of the Definitive Feasibility Study and assess whether Lofdal can produce separate light and heavy rare earth carbonate products through an integrated hydrometallurgical process.
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The programme is being carried out with the Japan Organization for Metals and Energy Security (JOGMEC), which has become a strategic partner in the project.
While the announcement centres on a single mine in north-western Namibia, it reflects a broader trend emerging across Africa’s critical minerals industry.
For decades, most rare earth projects on the continent have focused on producing mineral concentrates that are shipped overseas for further processing.
Lofdal’s latest plan would move one step further by producing rare earth carbonates,intermediate products that command greater value before they are refined into individual rare earth oxides.
Light rare earth carbonates contain elements such as neodymium and praseodymium, while heavy rare earth carbonates include dysprosium and terbium, critical materials used in permanent magnets that power electric vehicles, wind turbines, advanced electronics and defence technologies.
The move also aligns with Namibia’s strategy of increasing domestic beneficiation of critical minerals instead of relying solely on exports of raw materials.
Africa moving slowly up the chain
Several African countries are now pursuing similar strategies.
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The Lofdal project in Namibia reflects a broader push across Africa to move beyond raw mineral exports into local processing of rare earth elements.BI Africa
Malawi’s Kangankunde rare earth project, expected to begin production by the end of 2026, is largely designed to export concentrate, while Angola’s Longonjo project plans to produce rare earth carbonates.
Other projects, including Songwe Hill in Malawi and Phalaborwa in South Africa, have outlined plans to produce separated rare earth oxides.
Yet none of the continent’s major projects has announced integrated production of rare earth metals or permanent magnets, the stages where the highest profits and most strategic industrial value are concentrated.
That leaves Africa still dependent on overseas refiners despite holding some of the world’s most promising rare earth deposits.
Global competition is reshaping investment
The timing is significant. As geopolitical tensions reshape global supply chains, governments outside China are investing heavily in alternative
China dominates much of the world’s rare earth refining and magnet manufacturing capacity, prompting countries including Japan, the United States, Canada and members of the European Union to diversify supplies.
Lofdal has become part of that strategy through JOGMEC’s partnership, with Japanese interests supporting the development of one of the world’s few advanced heavy rare earth projects outside China.
Industry forecasts suggest Africa’s importance will continue to grow.
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Benchmark Mineral Intelligence estimates the continent could account for around 9% of global rare earth supply by 2029, while the International Energy Agency expects demand for rare earths used in permanent magnets to rise by about 25% between 2025 and 2030, driven by electric vehicles, renewable energy systems and robotics.
Despite that opportunity, experts say the biggest challenge remains developing processing industries capable of producing the high-value materials that currently generate most of the sector’s profits.
For now, projects such as Lofdal suggest Africa is making progress beyond exporting raw concentrate, but the continent still has a long way to go before it competes in the most lucrative parts of the global rare earth industry.
