Keypoints:
- US supports $50m rare earths project in South Africa
- Move reflects push to cut reliance on China
- Africa’s minerals gain new geopolitical weight
THE United States is backing a $50m rare earths project in South Africa to extract strategic minerals from 35 million tons of industrial waste. The move comes despite tensions with Pretoria and signals a sharper US push into Africa’s minerals race.
This is not simply a mining development. It reflects intensifying geopolitical competition between Washington and Beijing, with Africa emerging as a critical battleground for supply chains tied to defence, energy and advanced manufacturing.
That shift underscores Africa’s growing strategic importance in global resource politics, as explored in Africa’s critical minerals hotspots, where rising global demand is reshaping investment flows across the continent.
Strategic interests override diplomatic rift
The timing is striking. Relations between Washington and Pretoria have been under strain, yet the US has maintained backing for the project even after policy disagreements escalated.
This aligns with a broader shift seen in Africa Briefing’s reporting on US investment in Africa’s mining sector, where the US International Development Finance Corporation has expanded financing across rare earths, graphite and copper projects to secure supply chains.
The message is clear: critical minerals are no longer treated as routine commodities, but as strategic assets tied directly to national security.
China’s grip sharpens US urgency
Rare earth elements are essential for defence systems, renewable energy and advanced manufacturing. For years, China has dominated both supply and processing.
Washington’s support for the South African project reflects an effort to build alternative supply chains and reduce dependence on Chinese exports.
Still, projects like Phalaborwa remain relatively small in comparison, underlining how difficult it will be to rebalance global supply chains in the short term.
Africa’s mineral leverage grows
Africa’s role in the global minerals race is becoming increasingly central. Countries such as South Africa are gaining strategic importance as suppliers of critical resources.
This growing relevance enhances the continent’s bargaining power, allowing governments to push for better investment terms, local processing and long-term economic benefits.
As seen in Africa Briefing’s reporting on Guinea’s critical minerals deal, governments are actively positioning themselves to attract investment while strengthening control over key mineral supply chains.
Waste extraction offers a new mining model
The Phalaborwa initiative also stands out for its unconventional approach. Instead of traditional mining, it focuses on extracting rare earths from phosphogypsum, a by-product of earlier industrial processes.
If successful, this model could unlock new supply without the cost and environmental footprint of new mining operations.
A similar shift is visible in Africa Briefing’s report on Malawi’s rare earths push, where new projects are positioning the continent as a future hub in global supply chains.
Global rivalry is moving into resources
The significance of this project extends beyond South Africa. It reflects a wider shift in global geopolitics, where competition is increasingly centred on supply chains, industrial inputs and resource control.
The US decision to proceed despite diplomatic tensions suggests a more pragmatic approach to foreign policy, one that prioritises long-term strategic interests.
At the same time, China’s entrenched dominance means the competition will remain uneven for years to come.
For African countries, this creates both opportunity and risk. Increased global interest offers leverage, but the long-term outcome will depend on how effectively governments translate mineral wealth into industrial growth and economic transformation.
