US Invests in South Africa’s Rare Earths Project

The United States has committed $50 million to a rare earths project in South Africa, setting aside recent tensions with Pretoria to secure minerals vital for modern technology and defence. The investment comes through the US International Development Finance Corporation (DFC) and supports the Phalaborwa Rare Earths Project in Limpopo Province.

Relations between Washington and South Africa have soured in recent years, but the US sees rare earths as too important to ignore. These minerals are essential for electronics, robotics, renewable energy, electric vehicles, and defence systems. The US is trying to reduce its reliance on China, which dominates global supply.

The Phalaborwa project is unusual because it is not a traditional mine. Rainbow Rare Earths, the company behind it, is extracting rare earths from phosphogypsum, waste left behind by an old chemical plant. Project Director Alberto Bruttomesso explained that the waste has already been processed, saving costs. “We are treating phosphogypsum and then extracting rare earths. That’s a first in the world,” he said. The project is expected to run for 16 years once production begins in 2028.

Rainbow Rare Earths says the process will use up to 90 percent renewable energy and be cheaper than conventional mining. Senior metallurgist Roux Wildenboer described it as both mineral recovery and environmental clean up. “We’ve got the best of both worlds,” he said. “The rare earths we produce will drive green energy and technology without destroying the environment.”

CEO George Bennett noted that the company expects to supply the US, particularly its defence sector. Rare earths are critical for advanced weapons systems. For example, each F 35 fighter jet requires about 420 kilograms of rare earths, while submarines need several tons. Bennett said Rainbow Rare Earths is negotiating supply agreements with Western buyers.

The dunes at Phalaborwa contain 35 million tons of phosphogypsum, a by product of phosphate rock processing. Benchmark Mineral Intelligence, an independent research group, says the project’s potential is still uncertain because of its experimental approach, but it could be significant if successful.

South Africa’s government does not hold a direct stake in the project, but researchers say the country could benefit from the innovation. Dr Alseno Mosai of the University of Pretoria explained that unlike other countries, South Africa’s rare earths are already on the surface. “South Africa will be the second country with an efficient process like this, after China,” he said.

The US investment is part of a wider push to secure critical minerals globally. The Trump administration has pledged nearly $12 billion to build a strategic reserve and has supported projects in Africa, including a feasibility study in Mozambique and infrastructure along the Lobito Corridor in Zambia and Congo.

Rainbow Rare Earths plans to supply elements such as neodymium, praseodymium, dysprosium, and terbium, which are used in high performance magnets for wind turbines, electric vehicles, and robotics. The company says its approach could make South Africa a key player in the rare earths market while cleaning up industrial waste.