Uncle Sam Planning To Pour Even More Cash Into Africa As Critical Mineral Race Heats Up

The Trump administration is looking to pour more money into African mining projects as Washington battles to break Beijing’s grip on critical minerals.

The U.S. International Development Finance Corporation (DFC), a federal agency that helps fund businesses and projects in developing countries, plans to expand direct investments in strategically important projects, including African critical mineral operations, according to Reuters. The move would allow Washington to own a piece of certain projects rather than simply lending companies money, potentially giving the U.S. a greater financial stake in supply chains long dominated by Beijing.

“DFC’s investments in African critical minerals are an important step toward diversifying America’s mineral supply chains,” Anupam Ghildyal, chief growth officer of REalloys Inc., told the Daily Caller News Foundation. “Africa has substantial mineral resources, and expanding U.S. investment can help secure access to these strategically important materials.”

China dominates the global processing of critical minerals, including rare earth elements, cobalt, lithium and tungsten, which are essential to American manufacturing, military equipment and advanced technologies. Beijing’s control over these supply chains leaves the United States vulnerable to disruptions, even when raw materials are mined outside Chinese territory, according to the International Energy Agency.

The DFC did not respond to the DCNF’s request for comment.

The DFC has already committed more than $14 billion to investments across Africa, with over $3 billion directed toward critical minerals and related projects, Reuters reported. The agency is considering additional investments in rare earth developments and a graphite mine in Mozambique, although officials have not disclosed which projects could receive new equity financing.

Mozambique is already a major supplier of minerals used in American manufacturing, ranking among the world’s leading producers of graphite, titanium minerals and zirconium, according to the U.S. Geological Survey.

The DFC announced plans in March to pursue an ownership stake in Australian-owned Syrah Resources, which operates a major graphite mine in Mozambique and a battery-material processing facility in Louisiana, linking African mineral production directly to America’s domestic supply chain.

“DFC’s support for Mozambique’s Balama graphite operation, which supplies U.S. processing, is one example of these supply chain connections,” Abigail Hunter, Executive Director of SAFE’s Center for Critical Minerals Strategy told the DCNF.