U.S. Supports South African Rare Earth Project Amid Diplomatic Tensions
The United States is backing a project in Phalaborwa, South Africa, to extract rare earth elements from industrial mining waste. This initiative is supported by a $50 million equity investment from the U.S. International Development Finance Corporation (DFC). The project, led by Rainbow Rare Earths, aims to reduce U.S. reliance on China for critical minerals essential for high-tech products, including electronics and defense systems. Despite a diplomatic rift with South Africa, the U.S. continues to prioritize economic interests, advancing this project as part of a broader strategy to secure critical mineral supplies. The project is expected to begin extraction in 2028, utilizing renewable energy and innovative extraction methods to reduce costs. 
