Pensana and Toyota Tsusho Forge Rare Earth Supply Chain Partnership

Image Source : Reuters

Pensana Plc has signed a non-binding Memorandum of Understanding with Japan’s Toyota Tsusho Corporation to establish a new, independent, and sustainable rare earth supply chain. The agreement includes a proposed offtake of up to 20,000 tonnes per annum of ultra-clean mixed rare earth carbonate from Angola’s Longonjo mine over a five-year period, with pricing to be determined.

Key Highlights of the Agreement

- Toyota Tsusho intends to collaborate with Pensana to develop a rare earth supply chain utilizing the Indian processing facility operated by Toyotsu Rare Earth India
- The Longonjo mine in Angola will serve as the primary source of mixed rare earth carbonate, supporting global demand for critical minerals used in electric vehicles and renewable energy technologies
- Toyota Tsusho has been processing rare earth materials in India since 2013, catering to Japanese magnet manufacturers and expanding operations to meet growing industry needs

Strategic Importance and Industry Impact

The partnership aims to diversify the rare earth supply chain, reducing reliance on traditional sources and strengthening global access to critical minerals. Toyota Tsusho’s involvement underscores Japan’s commitment to securing stable rare earth supplies for its advanced manufacturing sector.

Future Prospects

Pensana’s Longonjo project is positioned as one of the most significant rare earth developments in recent years. The collaboration with Toyota Tsusho marks a key milestone in establishing a resilient supply network, ensuring long-term sustainability and economic viability.

Sources: Yahoo Finance, Cision, NewsnReleases.