The United States has committed $62.8 million in four African rare-earth projects amid growing efforts to reduce dependence on China for critical minerals and concerns over private investors’ reluctance to enter the sector.
The US development finance agency has committed US$62.8 million to rare-earth projects in Malawi, Angola, Madagascar and South Africa, although none of the projects has reached production, according to two senior DFC executives who spoke to Reuters.
The latest move highlights the growing importance of rare earths, essential minerals used to produce powerful magnets for electric vehicles, wind turbines, electronics and defence systems.
Their strategic importance has increased as countries seek to reduce dependence on China, which dominates the global rare-earth supply chain and has tightened export controls in recent years.
DFC steps in as private capital stays away
