Trump backs US$50 million investment for South Africa rare earths

A US$50 million US government investment is backing the Phalaborwa Rare Earths Project in South Africa, which aims to extract rare earth elements from mining waste at an old chemical processing plant. The project, supported by the US International Development Finance Corporation, is part of a broader US effort to decrease reliance on China for these critical minerals used in electronics, defense, and electric vehicles. Rare earth elements are essential for new technologies and the US government has been working to expand access to them. Despite diplomatic tensions between the US and South Africa, the current Trump administration has continued to support the project, which began in 2023 under the Biden administration.

The U.S. is investing in the Phalaborwa Rare Earths Project in South Africa to extract rare earth elements from mining waste. The project, backed by a $50 million U.S. government investment through the International Development Finance Corporation (DFC), aims to reduce U.S. reliance on China for these critical minerals used in electronics, robotics, and defense systems. Despite a diplomatic clash between the U.S. and South Africa, the Trump administration is proceeding with the project, prioritizing economic interests. The DFC views the investment as a way to unlock Africa's mineral potential while advancing U.S. strategic goals. Rainbow Rare Earths is developing the Phalaborwa project, with the DFC's investment channeled through partner TechMet.