Challenge
U.S. manufacturing and national security are dependent on access to several rare earth elements including neodymium, praseodymium, dysprosium, and terbium that are essential inputs for permanent magnets used in advanced electronics, defense and aerospace systems. But China controls the majority of the world’s rare earth production, processing, and refining, leaving U.S. and allied supply chains vulnerable.
Solution and Impact
DFC is providing $4.8 million in project development support to help Harena Rare Earths PLC develop its Ampasindava Ionic Clay Rare Earth Project in northwest Madagascar. Harena is developing the mine to produce mixed rare earth carbonate, or MREC, a lightly processed intermediate product that would be shipped off-site for further processing. The company plans to work with processing facilities outside of China, which would advance U.S. efforts to diversify supply chains.
The project, which is one of the few large scale ionic clay deposits outside China, contains several rare earths used in magnet production, including neodymium, praseodymium, dysprosium, and terbium. DFC’s support will help it transition from a pre-feasibility stage to feasibility with plans to conduct permitting, environmental, social, and proof-of-concept studies that would advance eligibility for a potential DFC debt or equity investment.
Harena’s Ampasindava project is based on a “near surface” ionic clay deposit, enabling extraction through shallow, surface-based mining and “heap leaching,” a process based on crushing rare ore to expose minerals. These processes are generally less invasive than conventional hard rock or underground mining.
This project was profiled in 2026.