US edges out China in Kenya with preliminary deal to control $62.4 billion untapped rare earth deposits
The United States has secured a preliminary agreement with Kenya to access one of Africa’s largest untapped rare earth and niobium deposits, valued at about $62.4 billion (Sh9.7 trillion), marking a strategic win for Washington in its intensifying competition with China over critical minerals.
The United States has secured a preliminary agreement with Kenya to access one of Africa’s largest untapped rare earth and niobium deposits, valued at about $62.4 billion (Sh9.7 trillion), marking a strategic win for Washington in its intensifying competition with China over critical minerals.
- The US has secured a preliminary deal with Kenya for access to the Mrima Hill rare earth and niobium deposit, valued at $62.4 billion.
- The agreement requires that all strategic minerals be processed domestically in Kenya, shifting away from traditional export of raw materials.
- This move comes amid global competition with China and Russia over Africa’s critical minerals crucial for clean energy and advanced technology.
- China remains the main processor and supplier of minerals from Africa, but the US is forging bilateral deals to ensure supply security and local value addition.
Kenya's President William Ruto announced the deal on the sidelines of the G7 summit in France, highlighting Kenya’s push to reshape how it monetises its natural resources.
The agreement centres on the Mrima Hill deposit in Kwale County and requires that all strategic minerals be processed domestically, a major shift from the traditional export of raw materials.
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William Ruto told Reuters that the agreement covering rare earths and other strategic minerals was already in advanced discussions and could be concluded soon, as Kenya moves closer to securing a landmark minerals partnership with the United States.
“We have agreed that the minerals will be processed in Kenya,” he said, following talks with G7 leaders, including U.S. President Donald Trump, adding that the arrangement reflects a shared push for local value addition rather than raw exports.
Intensifying global scramble for Africa’s critical minerals
The Kenya deal highlights the deepening rivalry between the United States, China and Russia over Africa’s mineral wealth, as global powers race to secure inputs vital for clean energy systems, advanced manufacturing and defence technologies.
China remains the dominant player in mineral processing and supply chain control across Africa, giving Beijing long-standing leverage in global markets.
The United States, however, is increasingly pursuing bilateral agreements that prioritise supply security and domestic value addition within partner countries.
Russia has also expanded its presence through security-linked mining arrangements in countries such as Mali and the Central African Republic, where access to resource-rich concessions has become part of its broader geopolitical strategy.
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Beyond Kenya, Washington has pursued similar critical minerals partnerships in the Democratic Republic of Congo, where cobalt and copper are central to global battery production.
These arrangements reflect a broader shift by African governments demanding local processing and greater value retention.
For the United States, securing rare earths is essential to reducing reliance on China’s dominance in refining. China seeks to maintain that dominance, while Russia continues to position itself as an alternative partner across Africa’s resource corridor.
Kenya’s agreement reflects a wider realignment in how African mineral wealth is negotiated in an increasingly competitive global order.