US Supports $150m Madagascar Rare Earths Project to Reduce Dependence on China
The United States is backing a rare earths project in Madagascar as Washington intensifies efforts to diversify critical mineral supply chains and reduce dependence on China.
The US International Development Finance Corporation (DFC) has committed $4.84 million to preliminary development work at the Ampasindava rare earths project, which is being advanced by London-listed Harena Rare Earths.
The project, valued at about $150 million, is expected to produce approximately 4,000 tonnes of rare earth oxides a year, with production targeted for mid-2028.
Ampasindava contains rare earth elements including neodymium, praseodymium, dysprosium and terbium, which are essential for permanent magnets, defence technologies, electric vehicles and renewable energy applications.
Harena is pursuing partnerships with US and European companies, including MP Materials, USA Rare Earths and Solvay, as it works to develop processing and downstream supply arrangements.
The US backing reflects growing Western interest in Madagascar’s mineral resources as countries seek alternatives to Chinese-controlled supply chains.
Madagascar is already a significant producer of graphite and cobalt and has established mineral exports to major global markets.
The Ampasindava project is therefore emerging as part of a broader push to establish more diversified and resilient critical mineral supply chains outside China.
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