US invests $50 million in South African rare earths project amid strategic mineral push

The Phalaborwa Rare Earths Project in South Africa has received a $50 million equity investment from the US International Development Finance Corporation, supporting efforts to extract rare earth elements from industrial mining waste. Located at an old chemical processing plant with two large sandlike dunes, this initiative aims to broaden US access to critical minerals essential for electronics, robotics, defense systems, electric vehicles, and other high-tech products. President Donald Trump's administration has prioritized expanding US mineral access, planning to deploy nearly $12 billion to create a strategic reserve. The DFC, established during Trump's first term, committed the investment in 2023 under President Joe Biden, despite ongoing tensions between the US and South Africa. Countries worldwide have identified dozens of minerals as critical, including copper, cobalt, lithium, nickel, and the 17 rare earth elements, which are crucial for reducing reliance on China for these resources.