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U.S. backs Madagascar rare earth project as critical-minerals push grows

The U.S. International Development Finance Corporation plans to fund pilot work and testing for Harena Rare Earths’ Ampasindava deposit, which the company estimates could produce 4,000 metric tons of rare earth oxides annually.

Reported · Written up by our desk · Mining

The Trump administration has backed a new rare earths project in northern Madagascar as Washington accelerates efforts to reduce dependence on China for critical minerals, according to OilPrice. OilPrice reports that the U.S. International Development Finance Corporation, or DFC, has committed up to $4.84 million to Harena Rare Earths’ Ampasindava project. The funding is intended to support pilot plant operations, metallurgical testing, and environmental studies, with successful completion potentially opening the door to larger U.S. government-backed construction financing. Harena estimates total project costs at roughly $150 million and expects the ionic clay deposit to produce 4,000 metric tons of rare earth oxides each year. The company projects 1,700 tons of high-value magnet elements, including neodymium, praseodymium, dysprosium, and terbium. A State Department spokesperson, as cited by Reuters through OilPrice, said the U.S. is looking to increase critical minerals investment in Africa to counter “opaque, predatory investments from our adversaries.” The story notes that China currently controls nearly 70% of global rare earth mining and close to 90% of refined magnet processing, with uses spanning crude oil refining, defense systems, EV batteries, and wind turbines.

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