The United States has committed $50 million to the Phalaborwa Rare Earths Project in South Africa, aiming to extract vital rare earth elements from mining waste dunes. Despite diplomatic disagreements with South Africa initiated during the Trump administration, the project continues as part of broader efforts to reduce reliance on China for critical minerals essential for electronics, defense, and green technologies. The initiative is led by Rainbow Rare Earths, with the support of the US government's International Development Finance Corporation, highlighting strategic economic interests in Africa's mineral resources.

The project, targeting rare earths such as neodymium, praseodymium, and dysprosium—used in magnets for wind turbines, electric vehicles, and defense applications—is slated to begin extraction by 2028. Employing innovative, low-cost, and environmentally conscious methods, the project expects to operate for 16 years, utilizing a significant portion of the phosphogypsum waste material from phosphate mining. While the potential remains uncertain, experts see this as part of a strategic move by the US to catch up with Chinese dominance in critical mineral supply chains, emphasizing the importance of diversified sourcing in global high-tech manufacturing.