Inside the US Push to Battle China's Rare Earth Control

Harena Rare Earths’ Ampasindava project has received further financial backing after a US$4.84m investment from the US International Development Finance Corporation (DFC).

The funds are set to support pilot plant work, laboratory testing and environmental programmes.

Through this investment the US is building a rare earths supply chain to lower reliance on China.

Details of the Ampasindava investment 

Harena Rare Earths is a rare earths exploration company that holds a 100% interest in the Ampasindava Ionic Clay Rare Earth project in Madagascar.

The rare earth deposit is one of the largest outside of China and holds multiple high-value magnet metals including dysprosium, praseodymium and neodymium.

Through its Ampasindava investment, Harena is aiming to develop a sustainable supply of critical metals to markets across the world.

Funding from the US is part of a new strategy that aims to increase its place in the critical mineral sector.

A State Department spokesperson says: "Madagascar fits within that strategy, and we ​see opportunities throughout the country to increase US and US-aligned investment in the critical mineral sector."

The Project Development Funding Agreement was signed on 22 July 2026 and terms around the fund have already been settled.

Harena confirmed that the first payment is underway, highlighting the US’s confidence in the project.

The DFC’s decision to invest in Harena Rare Earths’ plans is the result of a nine-month evaluation process.

Battling China's mineral control

China currently accounts for around 70% of rare earth mining and 93% of magnet manufacturing, according to the Center for Strategic and International Studies.

In October 2025, the US cut the fentanyl tariff on Chinese products from 20% to 10%, after China agreed to help the US with obtaining rare earths. 

The US Department of Defense issued a US$400m investment in MP Materials to create a localised supply chain.

MP Materials operates in California and is the only fully integrated US rare earth producer that manages mining, separation, refining and manufacturing.

The US funding of MP Materials and the Ampasindava project is only the start of a battle with China over mineral control.

According to Bloomberg, Beijing’s dominance is expected to last until the mid-2030s and countries outside of China will meet less than a fifth of the demand for dysprosium and terbium by 2035.

The US strategy is aiming to build investment in mining sectors that are dominated by China and build a supply chain outside of Asia.

Why these minerals matter for defence 

The Ampasindava project includes key minerals that are used in permanent magnets for wind turbines, electric vehicles, fighter jets and precision-guided missiles.

Neodymium magnets are used in military defence systems, providing magnetic strength while remaining lightweight.

According to the Congressional Research Service, every F-35 Lightning fighter jet engine needs  417kg of rare earth elements.

In January 2026, Lockheed Martin revealed that F-35 production is five times higher than any other allied fighter jet.

Its reliance on rare earth elements supports the US investment in Harena Rare Earths’ Ampasindava project.