Africa-Press. The U.S. Department of State has announced its support for the Ambatovy rare earth project in Madagascar as part of its strategy to reduce competitors’ dominance over critical mineral supply chains, reaffirming Washington’s efforts to develop alternative sources of minerals currently heavily controlled by China.
The project highlights a dynamic shift in the critical minerals sector in Africa, where Chinese companies have long dominated investment in copper, cobalt, and lithium. Some of the most notable rare earth development projects on the continent are experiencing significant growth with support from the United States and other Western countries.
Last week, Harena Rare Earths (HREE.L), listed on the London Stock Exchange and the owner and developer of the Ambatovy project valued at approximately $150 million, announced that the U.S. International Development Finance Corporation allocated up to $4.48 million for pilot plant work, laboratory testing, and environmental programs, paving the way for potential future funding.
A spokesperson for the U.S. Department of State stated that Washington’s strategy for critical minerals in Africa aims to increase U.S. investment in mining sectors long dominated by “opaque and exploitative investments from our adversaries.”
The spokesperson added, “Madagascar aligns with this strategy, and we see opportunities throughout the country to increase U.S. investment and allied investments in the critical minerals sector.”
China dominates the global mining and processing of rare earth elements and has used export controls in recent years to assert its influence over critical supply chains for electric vehicles, wind turbines, electronics, and defense systems.
Harena states that the ion clay deposits at Ambatovy are rich in neodymium, praseodymium, dysprosium, and terbium, which are essential for manufacturing permanent magnets necessary for defense applications, including fighter jets and precision-guided missile systems.
The project is expected to produce approximately 4,000 metric tons of rare earth oxides annually, including 1,700 tons of high-value magnetic rare earth elements NdPr and DyTb, according to the company.
Andrew Murphy, CEO of Harena, stated that the company is seeking an exploitation permit and hopes to receive approval “within the next two weeks.”
Murphy noted that Harena aims to begin production at Ambatovy by mid-2028 and is evaluating processing options in the United States and Europe, mentioning MP Materials, U.S. Rare Earths, and Solvay among potential refining partners.
Although the commitment from the International Development Finance Corporation is relatively modest, Murphy stated it could open the door for greater U.S. support as the $150 million project progresses toward the construction phase.
An official from the International Development Finance Corporation indicated that the agency may consider providing additional support for the project, subject to necessary due diligence and approvals, but declined to discuss potential funding.
