From Africa to Brazil, US War Department unlocks $1.55 billion funding package as rare earth race with China escalates

The United States has opened a $1.55 billion rare-earth financing package in Brazil, days after committing $62.8 million to projects across four African countries, as Washington accelerates efforts to challenge China’s dominance of the strategic minerals supply chain.

The latest commitment, announced by the US Department of War on August 24, includes a $750 million US government investment to support an offtake agreement for rare-earth materials from Serra Verde’s Pela Ema project in central Brazil.

The broader financing structure also includes a $300 million purchase commitment from the US Defense Logistics Agency and a $500 million commitment from a major bank.

The announcement came just five days after a Business Insider Africa report revealed that the U.S. International Development Finance Corporation (DFC) had committed $62.8 million to rare-earth projects in Malawi, Angola, Madagascar and South Africa.

The timing highlights the widening geographical scope of Washington’s push to secure alternative supplies as China maintains its dominance over global rare-earth mining and processing.