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U.S. Funds South African Rare Earths Project To Cut Reliance On China

The United States is funding a South African rare-earths mining project to reduce reliance on China. Washington announced the move recently and says the support aims to secure supplies of metals used in electronics and clean-energy technologies. The decision came despite recent diplomatic tensions between the two countries, underlining how strategic mineral access can override other frictions.

Rare earth elements are critical for smartphones, electric vehicles, wind turbines and certain defense systems, making supply diversification a national security and economic priority. U.S. support for South African extraction projects aims to build alternative sources outside China and to develop local jobs and industry, officials said. Observers noted the move reflects a broader Western push to secure critical minerals, though environmental and governance concerns will shape project outcomes.

Critical Minerals and Rare Earths Trump Administration Economic Policy U.S.–China Strategic Competition
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📌 Key Facts

  • U.S. International Development Finance Corporation is providing a $50 million equity investment in South Africa’s Phalaborwa Rare Earths Project via TechMet.
  • The project will process roughly 35 million tons of phosphogypsum waste at an old chemical plant to extract several rare earth elements.
  • Construction of a processing plant is expected to begin in early 2027, with extraction targeted to start in 2028 and operations projected to run for 16 years.
  • The Trump administration plans nearly $12 billion to create a U.S. strategic reserve of critical minerals and has continued this project despite an aid cutoff order for South Africa.

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