The US International Development Finance Corporation is stepping in to fund rare earths production in Africa as private investors remain reluctant to finance the sector, a key battleground in Washington’s competition with China.
The US has been scrambling to diversify its import of rare earths — vital for tech and defense — the majority of which are produced in China. Beijing threatened to impose an export ban last year, sending a shudder across US industry.
While Africa holds some of the largest deposits, many are in countries that lack adequate infrastructure, compounding investors’ worries on top of fears that Chinese intervention could subvert project economics, Reuters reported. “We’re trying to help projects reach a more de-risked stage,” a DFC official said.
