U.S.-Backed Rare Earth Extraction from South African Waste

PHALABORWA, South Africa — A U.S.-backed initiative is underway to extract rare earth elements from two massive dunes of industrial waste at a former chemical processing plant in South Africa, aiming to bolster supplies of minerals vital for high-tech industries.

The Phalaborwa Rare Earths Project, developed by Rainbow Rare Earths, targets 35 million tons of phosphogypsum, a byproduct from phosphate rock processing for fertilizers and acids. These sandlike dunes, remnants of past operations at the site, contain recoverable rare earths such as neodymium, praseodymium, dysprosium and terbium. These elements are used in high-performance magnets for electric vehicles, wind turbines, defense systems, robotics and consumer electronics. The project received a $50 million equity investment from the U.S. International Development Finance Corporation in 2023, channeled through partner TechMet, which focuses on securing critical minerals for Western markets.

Construction of a processing facility is set to begin in early 2027, with extraction operations expected to start in 2028 and continue for 16 years. Unlike traditional mining, which involves digging underground and separating...