US-backed Phalaborwa Rare Earths Project

The Phalaborwa Rare Earths Project, backed by a $50 million equity investment from the U.S. United States===International Development Finance Corporation, aims to extract rare earth elements from industrial mining waste in South Africa. Developed by Rainbow Rare Earths, the project seeks to reduce U.S. reliance on China for critical minerals essential for electronic devices, robotics, defense systems, and electric vehicles. Despite a diplomatic rift between the United States and South Africa, the project is moving forward, with extraction anticipated to begin in 2028 and operate for 16 years. The project is considered a low-cost asset due to its unique above-ground extraction process from phosphogypsum, a mining byproduct. This initiative is part of a broader U.S. strategy to secure critical mineral supplies globally, including investments in other African projects and efforts to establish a strategic reserve.