Challenge
Global demand is surging for rare earth elements that are essential to American national security, and used widely in the defense, energy, and transportation sectors. But Chinese dominance in the mining and production of these critical minerals leaves supply chains vulnerable. China currently controls nearly 60 percent of the world’s rare earth mining operations and more than 85 percent of refining capacity, meaning that rare earths produced around the world need to be shipped to China for processing.
Solution and Impact
DFC committed $3.4 million in project development support to help Pensana Plc conduct feasibility studies and related testing to advance development of the Longonjo Neodymium and Praseodymium mine and refining facility in Angola, which is believed to be one of the largest undeveloped rare earth deposits in the world.
The Longonjo mine produces mixed rare earth carbonate, or MREC, a compound composed of multiple rare earth elements, which will be transported by rail along the Lobito Corridor to Angola’s Lobito port. With DFC’s project development support, the mine is expected to begin Stage 1 production of 20,000 tonnes per year of MREC in 2026 and is targeting the expanded production in Stage 2 of 40,000 tonnes per year of MREC in 2028.
Refining rare earth elements involves extensive processing to separate them from the surrounding ore. Although China currently dominates the refining, businesses like Pensana are working to help diversify the supply chain.
DFC’s support for Pensana will help speed the expansion of the mining operations as well as the project development of the local refining facility to produce separated rare earth elements. The development of a separation facility could help Sub-Saharan Africa build the scale needed to develop as a local processing hub, becoming a major contributor to a diversified supply chain.
This project was profiled in 2025.