One of the key challenges facing U.S. partnerships in Africa for critical minerals is the processing and refinement of these essential resources. Currently, about 80% of rare earth minerals are processed in China, with many African nations exporting their critical minerals to the Chinese market. This reliance on China raises concerns about supply chain security and the need for the U.S. to enhance its processing capabilities.

During a recent U.S. Senate Committee on Finance meeting, officials discussed strategies to bolster domestic processing and refinement efforts. A significant focus was placed on Mountain Pass, a California-based company that has received substantial support from the Department of Defense. This support includes an equity investment and a long-term offtake agreement for the rare earths produced by Mountain Pass, which aims to create a comprehensive value chain from mining to processing.

The discussion highlighted the importance of developing processing facilities in the U.S., with plans for a new plant in Texas. This facility will not only process rare earth minerals but also produce high-performance magnets, which are crucial for various technologies. However, officials acknowledged that to fully realize these ambitions, additional resources beyond what Mountain Pass can provide will be necessary.

The meeting underscored the urgency for the U.S. to diversify its critical mineral supply chains and reduce dependence on foreign processing, particularly from China. As the administration seeks to strengthen these partnerships, the focus will be on increasing domestic capabilities and fostering collaboration with African nations rich in critical mineral resources.