Proposed partnership would combine Africa’s mineral resources, India’s processing capabilities and Japan’s technology and investment to diversify global supply chains
India and Japan are exploring joint investment opportunities in Africa’s critical minerals sector as the two Asian economies seek to diversify supplies of strategic raw materials and strengthen economic security.
The proposed partnership could bring together Africa’s rich mineral resources, India’s industrial and processing capabilities, and Japan’s capital and technology. The initiative could also extend to renewable energy, healthcare, digital infrastructure and transport connectivity, according to an analysis published by The Diplomat.
The move comes amid growing concerns over the concentration of global rare-earth refining capacity in China. Critical minerals are essential for manufacturing electric vehicles, renewable energy equipment, advanced electronics and other industrial technologies.
An existing partnership involving British-listed Pensana Plc and Japan’s Toyota Tsusho Corporation offers an example of how such cooperation could work. Under a non-binding memorandum of understanding signed in June 2025, Toyota Tsusho proposed purchasing up to 20,000 tonnes of mixed rare-earth carbonate annually from Pensana’s Longonjo mine in Angola over five years.
The material was intended to be processed at Toyota Tsusho’s Toyotsu Rare Earth India facility in Visakhapatnam before being supplied to Japanese magnet manufacturers. The arrangement illustrates how African mineral production, Indian processing facilities and Japanese industrial demand could be connected through a diversified supply chain.
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Cooperation between Indian and Japanese companies is also evident in Africa’s energy sector
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Indian firms and Japan’s Mitsui hold stakes in the Mozambique liquefied natural gas (LNG) project, which has a planned annual production capacity of approximately 13.12 million tonnes
The existing investments could provide a basis for expanding cooperation into mining, mineral processing, logistics and infrastructure across East and Southern Africa.
India and Japan have also strengthened their institutional cooperation on mineral resources. In June 2026, Japan’s Organisation for Metals and Energy Security and India’s Geological Survey of India signed a memorandum of cooperation to promote information-sharing and technical collaboration in mineral exploration.
However, the success of future African ventures will depend on commercial viability and the benefits delivered to host countries. Local processing, employment, skills development, infrastructure investment and technology transfer are likely to be important considerations as the proposed partnerships develop.
For India and Japan, deeper engagement with African mineral producers could help secure supplies for their industries while creating opportunities for broader economic cooperation across the continent.
