US backs Kenya’s push to process critical minerals locally
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The US has offered to support Kenya’s efforts to build domestic critical minerals processing capacity, adding momentum to the country’s plans to move beyond exporting raw materials.
The offer comes as the US and other major economies seek new sources of rare earths and other minerals used in vehicles, electronics, power systems and advanced manufacturing. Kenya, meanwhile, wants to keep more of the value from its natural resources inside the country.
Frank Garcia, US assistant secretary of state for African affairs, said Washington wants to support a mining sector in Kenya that attracts legitimate companies, respects local communities and strengthens global supply chains.
For Kenya, the focus on processing could have a wider economic effect than mining alone. Refining and processing can support skilled jobs, industrial investment and local supply chains.
The main question is whether that ambition can be turned into operating plants and long-term commercial agreements.
Kenya wants to keep more of its mineral value at home
Kenya is seeking investment in minerals including rare earth elements, titanium, graphite, lithium and niobium. The government has also placed local processing at the center of its mining strategy.
That reflects a wider shift across mineral-producing countries in Africa.
For decades, many countries have exported raw or partly processed materials before importing higher-value products made elsewhere. Governments are now seeking to retain more of the economic activity linked to their resources.
Processing can help, but it requires more than access to mineral deposits.
Facilities need reliable power, transport links, water, skilled workers and substantial capital. Producers also need customers willing to sign supply agreements that can support investment over many years.
Environmental and community concerns will also affect how projects develop. Rare earth processing can be technically complex, while poor environmental management can create significant local risks.
US support could help Kenya attract investors, technology providers and buyers. It could also place the country’s mining plans within a broader US effort to build mineral supply chains outside China.
Political support, however, does not guarantee commercial success. Projects will still need to prove they are technically and financially viable.
Mrima Hill could test whether the strategy works
Mrima Hill in Kwale County could provide an early test of Kenya’s approach.
The deposit is believed to contain rare earth minerals and niobium, which are used across manufacturing, energy and advanced technology. Kenyan authorities have been considering companies interested in developing the resource.
Six companies have reportedly been shortlisted, including two US companies. Critical Metals Corp. and Australia’s RareX have previously said they were among the bidders.
The level of interest points to the potential value of the deposit. Yet the outcome will depend on more than estimates of what lies underground.
Kenya will need to decide how extraction and processing should be structured, how communities will benefit and how environmental risks will be managed. Investors will also examine costs, infrastructure and expected demand for processed material.
These questions matter because major mineral projects can take years to move from exploration to commercial production.
Mrima Hill could therefore show whether Kenya can build a mineral industry that extends beyond extraction.
If processing takes place locally, the project could support investment in engineering, logistics, energy and technical services. If most of the material leaves the country in raw or lightly processed form, the wider economic effect would be smaller.
Processing has become a major supply chain concern
Kenya’s plans are developing as governments pay closer attention to where minerals are processed.
China remains the dominant force in rare earth supply chains. The International Energy Agency estimated that China accounted for 91% of global refined production of magnet rare earths in 2024. It also produced 94% of the world’s sintered permanent magnets.
That concentration has become a concern for countries seeking more secure access to materials used in electric vehicles, wind turbines, defense equipment and electronics.
Access to mine production does not remove dependence on processing. A country can secure raw materials and still rely heavily on another market to refine them.
For that reason, refining and processing plants have become a larger part of US and European mineral strategies.
Chinese export controls introduced since 2025 have also increased concern about supply concentration. The restrictions have highlighted how dependent some manufacturers remain on a small number of suppliers and processing centers.
The US has responded by supporting mineral projects and supply chains in several African countries. Washington has backed development linked to rare earth resources in Madagascar and has also supported projects connected with Angola and Malawi.
Kenya could become another part of that strategy.
For the Kenyan government, outside interest creates an opportunity to build a larger domestic industry rather than remain mainly a source of raw material.
The outcome will depend on financing, infrastructure, environmental controls and reliable buyers. Kenya will also need rules that give investors confidence while ensuring local communities and the wider economy share in the benefits.
US support strengthens Kenya’s position as it seeks investment, but it does not remove those commercial challenges.
Mrima Hill may offer an early indication of how far the country’s strategy can go. The project could show whether Kenya can turn growing demand for more diverse critical mineral supplies into a broader industrial opportunity at home.
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