India and Japan Partner to Secure African Minerals
Industrial operators should monitor this new supply chain model as it aims to bypass Chinese rare-earth refining dominance.
Updated on Oct. 16, 2026 in Oil and Gas
Live Poll
Do you believe foreign-led joint mineral ventures are beneficial for the development of African nations?
India and Japan are deepening a triangular partnership model to invest in African critical mineral sectors and infrastructure. The strategy seeks to reduce global reliance on China for rare-earth refining while diversifying supply chains in East and Southern Africa.
Why it matters
The initiative aims to decouple industrial supply chains from China's 90 percent market share in rare-earth refining. By combining Japanese capital with Indian processing, firms look to hedge against geopolitical volatility following recent U.S. aid shifts in the region.
Japan’s Mitsui holds a 20 percent stake in the $20 billion Mozambique LNG project, while Indian firms account for a 30 percent interest. Additionally, Toyota Tsusho has committed to an annual offtake of 20,000 tonnes of rare-earth carbonate from the Pensana site.
The players
Mitsui
A Japanese integrated trading and investment conglomerate with significant global infrastructure and energy holdings.
Toyota Tsusho
The trading arm of the Toyota Group focused on automotive supply chains and industrial mineral investments.
Pensana Plc
A rare-earth mining company developing processing projects to challenge current global market concentration.
The details
This triangular partnership leverages Indian processing capabilities alongside Japanese technology and capital to develop localized infrastructure in Kenya, Tanzania, and Mozambique. By replicating the Mozambique LNG model, which produces 13 million tonnes annually, the partners aim to secure raw material access for their own industrial sectors. This structure allows firms to bypass established, Chinese-dominated supply routes by building integrated road, rail, and port connectivity.
Timeline
June 2025: Pensana Plc and Toyota Tsusho signed a memorandum of understanding.
October 16, 2026: Strategy reports were published detailing the India-Japan Africa collaboration.
Market Landscape
The partnership marks a direct strategic challenge to China's 90 percent control of the global rare-earth refining market. It follows a pattern of industrial powers seeking to bypass established monopolies by building vertical integration across African resource-rich nations.
Operators dependent on rare-earth inputs should monitor these developments as a signal of shifting supply chain provenance and long-term price volatility. Firms should evaluate the resilience of their current suppliers against this move to bypass Chinese refining nodes.
The takeaway
The India-Japan collaboration signals an increasing priority on resource security through state-backed private partnerships. Business leaders should track the progress of the Toyota Tsusho offtake agreement as a benchmark for future non-Chinese mineral supply contracts.
Further reading
For broader trends in global resource investment, see our Oil and Gas section.
Live Poll
Do you believe foreign-led joint mineral ventures are beneficial for the development of African nations?
