The U.S. Trade and Development Agency (USTDA) has confirmed its support for the Monte Muambe rare earths project in northern Mozambique, operated by Altona Rare Earths.
Push to diversify rare earth supply chains
The move forms part of Washington’s broader strategy to diversify global rare earth supply chains, which remain heavily dominated by China.
China currently controls about 70% of global rare earth production, equivalent to roughly 3.7 million tonnes, compared with around 1.5 million tonnes controlled by U.S. companies.
Strategic and geopolitical concerns
This imbalance has raised significant geopolitical and economic concerns in Washington, given the strategic importance of rare earths for defence systems, clean energy technologies, and advanced manufacturing.
Project scale and economics
The Monte Muambe project, which carries an estimated development cost of $276.3 million, is expected to produce around 15,000 tonnes of mixed rare earth carbonate annually over an 18-year mine life. These projections are under review as part of an ongoing prefeasibility study.
“This commitment of support from USTDA is a powerful external validation of the Monte Muambe project’s strategic quality and economic potential,” Chief Executive Officer Cedric Simonet said. “It underscores the strong, high-level interest from a leading U.S. government institution in developing a secure alternative source of rare earths.”
A broader U.S. strategy across Africa
Beyond Mozambique, Washington is extending support to several rare earth and critical minerals projects across Africa as it seeks to build a more secure and diversified supply chain.
In Angola, British firm Pensana is pursuing up to $160 million in financing from the U.S. Export-Import Bank (EXIM) for its Longonjo rare earths project.
The initiative is intended to anchor a U.S.-aligned supply chain and further reduce dependence on Chinese-controlled sources.
South Africa has also attracted U.S. backing, with the Phalaborwa rare earths project receiving support through a grant from the U.S. Development Finance Corporation (DFC) in partnership with investment firm TechMet.
Notably, the project is regarded as one of the highest-margin, near-term rare earth ventures outside China and remains a preferred candidate for U.S. support, as it offers a direct, low-cost supply of rare earths essential for electric vehicle batteries and green energy technologies.
Deepening engagement in the DRC
U.S. involvement is also expanding in the Democratic Republic of Congo (DRC), already a global powerhouse in cobalt and copper production.
In December 2025, Washington signed a strategic mining partnership with the DRC aimed at diversifying investment flows and curbing China’s influence in the country’s mining sector.
As part of this push, the U.S.-based Orion Critical Mineral Consortium has signed a memorandum of understanding to acquire a 40% stake in the Mutanda and Kamoto copper-cobalt mines.
The transaction, valued at about $9 billion, is expected to secure future production for U.S. buyers once regulatory approvals are completed.
Africa’s growing role in global rare earth supply
These efforts align with Africa’s increasing role in the rare earths market, with the continent projected to supply up to 9% of the world’s rare earths by 2029.
The support from the U.S. government reflects a broader interest in Africa’s mineral wealth and its role in securing critical resources for the global economy.
