The United States is intensifying efforts to diversify its rare earth supply chain, aiming to reduce dependence on China, the world’s leading supplier of these critical materials. In this strategic context, U.S. investors and federal authorities are increasingly channeling capital into African rare earth projects, with some initiatives receiving direct government backing.
On Tuesday, November 18, Harena Rare Earths announced it had obtained the necessary approvals to list its shares on the U.S. OTCQB Venture Market. This move follows a similar announcement by Pensana Rare Earths, which plans to pursue a Nasdaq listing in 2026. Both companies have cited strong interest from U.S. investors in their African projects—Harena’s Ampasindava project in Madagascar and Pensana’s Longonjo project in Angola.
“Harena has generated considerable attention from U.S. investors. Considering the company’s strategic focus on the U.S. market for developing its rare earth deposits, the OTCQB market offers significant synergies for advancing the Ampasindava project,” the company said in its statement.
The heightened focus on African rare earth projects comes amid Washington’s broader push to curb reliance on China for critical minerals, which are essential for technologies such as electric vehicles, renewable energy, and defense systems. Last month, Pensana announced a partnership with permanent-magnet producer VAC to build a U.S.-based supply chain fueled by Longonjo’s future output.
For both companies, already publicly traded on the London Stock Exchange, a U.S. listing offers expanded access to capital markets at a crucial stage when they seek to move their projects from development to production. Harena aims to complete construction of a new mine at Ampasindava by the end of 2028, targeting annual production of 5,000 tonnes of total rare earth oxides (TREO). The project requires $143 million in investment, and its feasibility study is currently underway.
Meanwhile, Pensana has already commenced construction at Longonjo, with a goal of achieving initial output of 20,000 tonnes of mixed rare earth carbonate (MREC) per year, with commissioning scheduled for early 2027. Ahead of its U.S. listing, Pensana is seeking a $160 million loan from the U.S. Export-Import Bank (EXIM), further highlighting the involvement of federal institutions in supporting African rare earth development.
Beyond these two high-profile projects, U.S. institutions are also actively supporting Africa’s wider rare earth potential. The U.S. International Development Finance Corporation (DFC) has backed the South African Phalaborwa project since 2023, reinforcing America’s growing strategic interest in securing alternative rare earth sources outside of China.
The combined effect of government support and growing investor interest underscores the importance of African rare earth projects as a critical component of global supply chain security, while also creating opportunities for economic growth and industrial development across the continent.
