Washington under Trump eager to secure alternative rare earth supplies, but Beijing's dominance too strong to break soon
US$50 million DFC funding for Phalaborwa Rare Earths Project in South Africa advances despite political tensions
Quick Look
- The Trump administration is pushing for pragmatic diplomacy to rebuild critical mineral supply chains without China, with the Phalaborwa Rare Earths Project in South Africa receiving US$50 million in equity funding from the US International Development Finance Corporation.
- The project, proposed in 2023 during the Biden administration, has advanced despite Donald Trump's accusations that South Africa is persecuting its white minority—allegations rejected by President Cyril Ramaphosa.
- Observers say Beijing's dominance in rare earths appears too strong to break soon.
AI-generated summary
The Trump administration's strategic interest in rare earths is pushing the US towards more pragmatic diplomacy as it seeks to rebuild critical mineral supply chains without China, according to observers. As a result, there had been cooperation with other countries on resource projects even when broader political ties were strained, they said, adding that Beijing's dominance in the resources appeared too strong to break soon.
One example is the Phalaborwa Rare Earths Project in South Africa, which recently received US$50 million in equity funding from the US International Development Finance Corporation (DFC), the American federal government's development bank.
Proposed during the Joe Biden administration in 2023, the deal has advanced despite Donald Trump's accusations that South Africa is persecuting its white minority, allegations rejected by President Cyril Ramaphosa.
Rainbow Rare Earths, a London-listed mining company helping to develop the deal, said the Phalaborwa project was designed to extract rare earths from mining waste and expected to deliver some highly sought-after minerals.
