The United States is planning to back a rare earths project in Madagascar, as the Trump administration continues to look for ways to reduce the country's reliance on China.
According to Reuters, the U.S. International Development Finance Corporation (IDFC) has committed up to $4.84 million for the pilot phase of a $150 million project at the Ampasindava ionic clay deposit in Northern Madagascar. That money will go toward pilot plant work, laboratory testing and environmental programs, with the possibility for more funding down the line.
The Ampasindava deposit is rich in rare earth elements used to manufacture permanent magnets — ones that create their own persistent magnetic field without needing electricity or an external power source — used in fighter jets and precision-guided missile systems, among other defense applications. In total, the project is expected to produce roughly 4,000 metric tons of rare earth oxides each year.
Ampasindava has operated as an undeveloped mining concession for decades. In 2011, Madagascar's government introduced a moratorium on mining licenses at the site, before lifting it in 2023. Today, it's viewed as one of the largest rare earth deposits in the world, holding an estimated 699 million metric tons of mineral resources. The mine was acquired by Australian rare earth miner Harena Resources in 2025.
China produces roughly 60% of the world's mined rare earths, as well as 94% of global permanent rare earth magnets. At the tail end of his first term in 2020, President Donald Trump declared a national emergency over domestic rare earth production. In his second term, Trump announced plans to invest nearly $12 billion to form a strategic reserve of rare earth minerals, and issued loans to U.S. rare earth mine operators to upgrade facilities and boost production capacity.
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