US Backs Madagascar's Rare Earths Project as Part of Bid to Counter China

The Trump administration has announced its support for a new rare earths project in Madagascar, aiming to break China's grip on critical minerals. The U.S. International Development Finance Corporation (DFC) has committed up to $4.84 million to Harena Rare Earths' Ampasindava project in northern Madagascar.

The funding will support pilot plant operations, metallurgical testing, and environmental studies. If successful, it could potentially unlock much larger U.S. government-backed construction financing for the project, which estimates total costs at around $150 million.

Harena Rare Earths expects the Ampasindava ionic clay deposit to produce 4,000 metric tons of rare earth oxides annually, including 1,700 tons of high-value magnet elements like neodymium and dysprosium. These elements are crucial for various technologies, including crude oil refining, defense systems, EV batteries, wind turbines, healthcare, and electronics.

The Trump administration has been actively pursuing a strategy to increase U.S. critical minerals investments in Africa, particularly in countries like Madagascar. The project is not the first rare earths project in Africa to receive backing from the Trump administration; in February, the U.S. Trade and Development Agency awarded a $1.87 million grant to Altona Rare Earths for the Monte Muambe rare earths project in Mozambique.