Link to Article: https://apnews.com/article/us-south-africa-china-minerals-rare-earths-8bfd695cfbbda2f73fbd32cca0326006
The United States is backing a rare earth minerals project in South Africa despite strained diplomatic relations, highlighting the growing importance of critical resources in global politics. The project, located in Phalaborwa, aims to extract rare earth elements from mining waste and is supported by a $50 million investment from a U.S. government agency. These minerals—essential for technologies like electric vehicles, defense systems, and electronics—are currently dominated by China, which controls much of the global supply. The U.S. involvement reflects a broader strategy to reduce dependence on China and secure access to key materials, even if it means prioritizing economic and strategic interests over diplomatic tensions. The project is expected to begin production later in the decade and represents part of a larger effort by the U.S. to compete with China’s influence in the global minerals market.
It is no surprise that the U.S. is continuing its investments into rare earth minerals. In recent years they have funded similar projects in a number of countries, notably Australia and South Korea. Of course, this investment serves as a means to diversify rare earth mineral supply away from China. This also comes at a time when relations between the U.S. and South Africa are at an all time low. The U.S. has accused South Africa of being anti-American as they strengthen relations with Russia. Clearly, this tension is not great enough to dissuade an economic partnership. Moving forward, this partnership could signify a turning point in U.S.-South Africa relations.
The motives in this situation remain somewhat clear. The U.S. is outsourcing rare earth minerals away from Chinese suppliers in an effort to lessen their reliance and economic dependence on China, even if it means working with an unfavorable nation. This ultimately strengthens U.S. national security as China holds less leverage and economic power over the U.S. As for South Africa, this partnership allows them to both receive significant funding and investments in their economy, and potentially repair relations with the U.S. through economic diplomacy. China will likely express frustration as they have in past efforts as the U.S. continues to cut ties.
This investment can be viewed through the idea of economic interdependence. Rare earth minerals are in high demand in the U.S. for a number of technologies. Because the U.S. does not have a large enough natural supply of earth minerals, they must source it from other states like China and South Africa. The liberal theory suggests that this outsourcing contributes to a safer world as nations become more reliant on one another, making conflict far more costly. That said, this idea could reflect a decrease in national security for both China and the U.S. as economic ties become weaker. Ultimately, rare earth minerals only contribute a small portion of the total exports from China to the U.S., making it unlikely for this development to truly raise any concern.