• Altona Rare Earths has secured U.S. support for the Monte Muambe rare earth project in Mozambique.

• The move reflects Washington’s push to diversify rare earth supply chains beyond China.

• Mozambique joins a growing list of African countries targeted by U.S.-backed rare earth projects.

In a note published on Monday, February 9, British mining company Altona Rare Earths said it had secured confirmation of U.S. support for the development of its Monte Muambe rare earth project in Mozambique. The backing, provided by the United States Trade and Development Agency (USTDA), reflects the accelerating push by Washington into Africa’s emerging rare earths sector.

A new step in Washington’s strategy

Facing China’s near dominance of the rare earths market—accounting for around 70% of global production—the United States has stepped up efforts in recent months to develop alternative supply chains. Africa is gradually emerging as a key pillar of this strategy, with several U.S.-backed financing initiatives announced across the continent.

In Angola, Pensana, the British company behind the Longonjo project, which aims to develop a U.S.-oriented rare earth supply chain, is currently seeking up to $160 million in financing from the U.S. Export-Import Bank (EXIM). At the same time, Washington is supporting South Africa’s Phalaborwa project through a grant from the Development Finance Corporation (DFC), via investment firm TechMet.

More recently, Lindian Resources, operator of the Kangankunde project in Malawi, said it was in discussions with the U.S. government to position its asset as a potential lever to help reduce what it described as the United States’ “emerging supply deficit.” It is within this same strategic context that support for Mozambique’s Monte Muambe project has been confirmed, with the aim of signing a formal grant agreement that is currently under preparation.

In comments, Altona Rare Earths Chief Executive Officer Cédric Simonet said the USTDA’s commitment represents significant external validation of Monte Muambe’s strategic quality and economic potential and highlights the strong, high-level interest of a leading U.S. government institution in developing a secure alternative source of rare earths.

Mozambique joins the momentum

At this stage, few details have been disclosed on the concrete terms of a potential partnership between Altona and the USTDA for the Monte Muambe project. The exact nature of U.S. support therefore remains to be clarified for the asset, whose development cost was estimated at $276.3 million in a 2023 preliminary study. Altona is targeting average production of about 15,000 tons per year of mixed rare earth carbonate over a mine life of 18 years.

These parameters are currently being revised as part of a prefeasibility study, which is more advanced than a preliminary economic assessment. In the meantime, U.S. interest in Monte Muambe already gives Mozambique greater visibility within the emerging dynamics of Africa’s rare earths sector. The country also hosts other projects at earlier stages, including Adriano, where Australian junior MRG Metals Limited announced in October 2025 the discovery of what it described as a potential alluvial rare earth deposit.

Attention now turns to how these dynamics will evolve in the coming months, both in terms of U.S. ambitions around Monte Muambe and how Maputo seeks to position itself in related policy debates. While Africa currently produces none of these minerals, which are critical for wind turbines and electric vehicles, the continent could account for around 9% of global rare earth supply by 2029, according to Benchmark Mineral Intelligence.

Aurel Sèdjro Houenou