The United States has pushed past its diplomatic fallout with South Africa to secure access to rare earth minerals, committing $50 million to the Phalaborwa Rare Earths Project in Limpopo Province. This comes even as relations between Washington and Pretoria sit at their lowest point in decades .
Why the Project Matters
The dunes at Phalaborwa — waste from an old chemical plant — contain valuable rare earth elements essential for:
- Electronics
- Robotics
- Defence systems
- Electric vehicles
- High‑tech manufacturing
The U.S. is accelerating efforts to reduce reliance on China, which dominates global rare‑earth processing. The investment comes through the U.S. International Development Finance Corporation (DFC), part of a broader plan to deploy nearly $12 billion to build a strategic reserve.
Politics vs. Strategic Interests
The DFC’s involvement began under the Biden administration and continues despite President Donald Trump’s executive order halting financial assistance to South Africa. The message is clear: economic and strategic interests outweigh political tensions.
The DFC says the project helps unlock Africa’s mineral potential “while advancing U.S. strategic interests.”
A First‑of‑Its‑Kind Extraction Process
The project, led by Rainbow Rare Earths, uses an unusual method:
- Instead of traditional mining, it extracts rare earths from phosphogypsum, a byproduct already processed decades ago.
- This reduces cost, energy use, and environmental impact.
- Up to 90% renewable energy will power operations.
Project Director Alberto Bruttomesso says the hardest work — crushing, milling, heating — was already done by the former chemical plant. Extraction is expected to begin in 2028, with the site operating for 16 years.
Strategic Supply for U.S. Defence
Rainbow Rare Earths CEO George Bennett says the company expects to supply the U.S., especially its defence sector. For context:
- An F‑35 fighter jet uses about 420 kg of rare earths.
- A California‑class submarine uses 4–5 tons.
Negotiations for supply agreements with Western buyers are underway.
South Africa’s Role
South Africa has no direct stake in the project, but researchers say the country stands to benefit from being one of the few places where rare earths can be extracted efficiently from surface material.
Dr. Alseno Mosai of the University of Pretoria notes that unlike China, Brazil, or Russia — where miners must dig deep — Phalaborwa’s minerals are already at the surface. He adds that despite political tensions, the U.S. knows South Africa’s mineral wealth is too important to ignore.
Wider U.S. Strategy in Africa
The Phalaborwa project is part of a broader American push:
- A feasibility study for Mozambique’s Monte Muambe rare‑earth project
- Support for the Lobito Corridor, an 800‑mile railway linking Congo and Zambia to the Atlantic — ideal for exporting minerals to the U.S.
Outlook
The U.S. may be clashing with South Africa diplomatically, but when it comes to minerals critical for future technologies — and defence systems — Washington is making sure it stays in the game.