US backs Madagascar rare earths project with $4.84M to chip away at China’s mineral dominance

The US government just put money where its geopolitical mouth is. The International Development Finance Corporation signed a Project Development Funding Agreement worth up to $4.84 million with Harena Rare Earths Plc to advance a rare earths project in Madagascar. The deal, announced July 22-23, 2026, marks the DFC’s first direct financial commitment to Harena’s Ampasindava ionic clay project. The funding will go toward permitting, environmental and social studies, and building a proof-of-concept pilot plant. Why rare earths matter beyond the periodic table China currently dominates the global rare earths supply chain at virtually every stage, from mining to processing to magnet manufacturing. That concentration of control has become a national security concern for Washington, particularly as trade tensions between the two superpowers show no signs of cooling. The Ampasindava deposit is described as one of the most significant ionic clay rare earth resources outside China. Harena Rare Earths holds a 75% interest in the project, which targets heavy and magnet rare earth elements critical for defense applications, EV production, and high-tech manufacturing. The project previously had...