India and Japan Expand Critical Mineral Projects in Africa
The two nations are forming joint ventures to secure mineral supply chains and reduce their reliance on Chinese refining.
Updated on Oct. 16, 2026 in Oil and Gas
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India and Japan are deepening their economic partnership in Africa through joint ventures in the critical minerals sector and infrastructure development. The strategy aims to build independent supply chains, targeting resource-rich nations including Mozambique, Kenya, and Tanzania.
Why it matters
By pooling Indian processing capabilities with Japanese technology and capital, the two countries seek to bypass China, which currently controls 90 percent of global rare-earth refining. This shift also provides African nations with alternative partners as they face reduced aid from the United States.
Toyota Tsusho has committed to an annual offtake of 20,000 tonnes of rare-earth carbonate. Meanwhile, the Mozambique LNG project features two onshore trains producing 13 million tonnes per annum.
The players
Toyota Tsusho
A member of the Toyota Group that manages the organization's non-automotive business interests, including mineral resources and energy projects.
Mitsui
A prominent Japanese conglomerate that maintains extensive global investments in energy, infrastructure, and commodity trading.
Pensana Plc
A rare-earth mining company that operates the Longonjo project in Angola.
The details
The collaboration utilizes a triangular partnership model that links Indian processing with Japanese industrial investment. Projects include transport infrastructure in Kenya and Tanzania alongside active stakes in major energy assets like the Mozambique LNG project.
Timeline
Pensana Plc and Toyota Tsusho signed a memorandum of understanding in June 2025.
Reports regarding the India-Japan Africa strategy were published on October 16, 2026.
Market Landscape
The joint initiative challenges the current dependency on China, which controls 90 percent of global rare-earth refining. By integrating Japanese capital with Indian processing, the partnership positions both nations to capture greater market share in the emerging green energy supply chain.
The expansion of these mineral and energy projects may lead to more stable pricing and diversified supply routes for critical green energy components. Consumers can expect long-term impacts on the availability and cost of electronics and electric vehicle batteries manufactured using these materials.
The takeaway
This partnership illustrates the increasing importance of cross-border alliances in securing raw material sovereignty. Diversification of mineral sources remains a critical priority for nations looking to mitigate risks associated with centralized supply chains.
Further reading
For broader analysis on industry resource trends, visit our Oil and Gas section.
Live Poll
Do you believe foreign-led joint mineral ventures are beneficial for the development of African nations?
