Madagascar’s rare earths sector is emerging as a new front in the global race to secure critical minerals, with U.S. backing for the $150 million Ampasindava project offering Washington an alternative to China-dominated supply chains.

U.S. backs Madagascar mining project

The U.S. International Development Finance Corp. has committed up to $4.48 million to support pilot plant work, laboratory testing and environmental programs at Ampasindava, according to project developer Harena Rare Earths. The funding could help position the project for larger U.S. financing as it moves toward construction.

Washington sees Madagascar as part of a broader strategy to increase U.S. and allied investment in Africa’s critical minerals industry, an area where Chinese companies have built a strong presence in copper, cobalt and lithium.

The development comes as governments and manufacturers seek to diversify supplies of minerals considered essential to electric vehicles, renewable energy, electronics and defense systems.

Ampasindava targets high-value rare earths

The Ampasindava deposit is an ionic clay resource containing neodymium, praseodymium, dysprosium and terbium, rare earth elements used in permanent magnets and other advanced technologies.

Harena expects the project to produce about 4,000 metric tons of rare earth oxides annually, including roughly 1,700 metric tons of high-value magnet rare earths known as NdPr and DyTb.

Harena Executive Chairman Andrew Murphy said the company is seeking an exploitation permit and expects to target production by mid-2028. The company is also assessing processing options in the U.S. and Europe, potentially creating a supply chain extending beyond Madagascar.

Africa’s critical minerals race

China remains the dominant force in global rare earth mining and processing, making alternative supplies strategically important for Western governments and manufacturers.

For Madagascar, the Ampasindava project could turn its rare earth resources into a larger role in the global critical minerals market. For the U.S., the investment offers another potential source of magnet materials at a time when supply-chain security has become an increasingly important economic and national-security issue.

The relatively small initial U.S. commitment may therefore be less significant for its size than for what it signals: Madagascar is becoming part of the contest to reshape the global rare earths supply chain.