Rare Earth Elements in Namibia and South Africa: Considerations for U.S. Investment

Rare earth elements (REE), 17 metals and alloys, are considered critical supply-chain inputs in the production of military equipment; the civilian economy, including medical equipment and television technologies; and in clean technologies that reduce carbon emissions. Americas dependence on imported REEs particularly from China, a strategic competitor has precipitated initiatives to diversify the U.S. supply chain of these critical minerals. Africa's nascent REE sector can serve as a stable and predictable source for critical minerals for the United States. Namibia and South Africa are of particular interest, as they are the countries in Africa with the largest amounts of mineral deposits that contain REEs. Moreover, both countries have strong business climates and robust mining industries. However, there are concerns surrounding some weakening tenets for good governance and good resource management.