The United States is stepping up efforts to reduce its dependence on China for critical minerals by backing a major rare earth project in Madagascar, highlighting Africa’s growing importance in the global race for strategic re
U.S. backs Madagascar’s rare earth project in bid to challenge China’s mineral dominance
- The U.S. is increasing investment in Africa to reduce dependence on China for critical minerals, supporting a rare earth project in Madagascar.
- The U.S. International Development Finance Corporation committed up to $4.48 million to develop the Ampasindava Rare Earths Project, covering pilot plant operations and environmental programs.
- Africa’s role in supplying critical minerals for electric vehicles and renewable energy is growing as Western governments seek alternatives to China-dominated supply chains.
- Madagascar’s Ampasindava deposit contains key rare earth elements needed for clean energy and high-tech industries, with production expected by mid-2028.
The U.S. International Development Finance Corporation (DFC) has committed up to $4.48 million to support early-stage development of the Ampasindava Rare Earths Project, owned by London-listed Harena Rare Earths.
The funding will cover pilot plant operations, laboratory testing and environmental programmes, laying the groundwork for possible future investment in the estimated $150 million project
A spokesperson for the U.S. State Department said the initiative aligns with Washington’s strategy to expand U.S.-aligned investment in Africa’s mining sector, which it says has long been dominated by geopolitical rivals.
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Africa has become increasingly important in the global competition for critical minerals used in electric vehicles, renewable energy technologies and defence systems. While Chinese firms have built dominant positions in the continent’s copper, cobalt and lithium industries, Western governments have intensified efforts to secure alternative supply chains.
Madagascar is emerging as part of that shift. The island nation holds significant reserves of graphite, nickel and rare earth elements, making it an increasingly attractive destination for investors seeking diversified mineral supplies.
The Ampasindava ionic clay deposit contains neodymium, praseodymium, dysprosium and terbium—rare earth elements essential for producing permanent magnets used in electric vehicles, wind turbines, consumer electronics and advanced military equipment.
Harena expects the mine to produce about 4,000 metric tons of rare earth oxides annually, including 1,700 metric tons of high-value magnet rare earths. Executive Chairman Andrew Murphy said the company hopes to secure an exploitation permit within weeks and begin production by mid-2028.
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Harena is evaluating processing options in the United States and Europe, naming MP Materials, USA Rare Earths and Solvay among potential refining partners.
Although the DFC’s current commitment is relatively modest, it could unlock larger financing as the project advances.
If successful, Ampasindava would strengthen Madagascar’s role in global critical-mineral supply chains while supporting U.S. efforts to reduce reliance on Chinese processing and to secure alternative
