US backs Madagascar rare earths project in push to loosen China's supply chain grip

The Ampasindava ionic clay deposit is rich in neodymium, praseodymium, dysprosium and terbium, vital elements for the manufacture of permanent magnets essential for defence applications including fighter jets and precision-guided missile systems, Harena says.

The project is expected to produce about 4,000 metric tons of rare earth oxides annually, including 1,700 tons of high-value magnet rare earths NdPr and DyTb, the company said.

Harena Executive Chair Andrew Murphy told Reuters on Monday that the company was seeking an exploitation permit and hopes to secure approval "in the next couple of weeks".

Madagascar's mines ministry did not immediately respond to requests for comment.

Harena aims to begin production at Ampasindava by mid-2028 and is evaluating processing options in the U.S. and Europe, Murphy said, naming MP Materials MP.N, USA Rare Earths and Solvay among potential refining partners.