U.S. Firms Are Competing for Kenya’s Rare Earths and Niobium Deposits

Kenya’s Mrima Hill could hold tens of billions of dollars’ worth of rare earth minerals and niobium, resources used in electric vehicles, wind turbines, aerospace manufacturing and advanced industrial technologies, as U.S. companies compete to develop the deposits.

Five bidders, including U.S.-linked consortia, an Australian consortium and a Kenyan-British joint venture, submitted tenders on Oct. 21 to develop the deposits in southern Kenya, about 65 kilometres from the port city of Mombasa, Mining Minister Hassan Ali Joho announced.

The government expects to award the project within two to three weeks. Two Chinese companies, Hunan Research Institute for Nonferrous Metals and Jinan Yuxiao Group, withdrew from the tender process last week.

The deposits contain rare earth elements, a group of 17 metals essential to several high-growth technology industries, including electric vehicle manufacturing, renewable energy, electronics and defence systems. Their magnetic properties make them particularly valuable in producing high-performance permanent magnets used in electric motors and wind turbine generators.

Neodymium and praseodymium, two of the most commercially important rare earth elements, are used in powerful permanent magnets that enable smaller, lighter and more energy-efficient motors. Dysprosium and terbium are added to some magnets to improve their performance at high temperatures, including in electric vehicles and offshore wind turbines.

Rare earths are also used in smartphones, computer hard drives, medical imaging equipment, precision-guided weapons and other advanced electronics, making access to their supply chains a strategic priority for major economies.

Niobium, the other major mineral identified at Mrima Hill, is primarily used to strengthen steel. Small quantities can improve steel’s strength, toughness and resistance to heat, making it valuable in automotive manufacturing, pipelines, construction and infrastructure.

The metal is also used in aerospace applications, particularly in high-performance alloys for jet engines and rocket components, where materials must withstand extreme temperatures and mechanical stress. Niobium is further used in superconducting magnets for medical MRI scanners and particle accelerators.

Brazil dominates global niobium production, with Canada also among the major producers, making new deposits strategically important for countries seeking to diversify supply.

Joho said preliminary assessments indicated that Mrima Hill contained tens of billions of dollars’ worth of rare earth minerals and niobium, although detailed information on the individual mineral grades and recoverable quantities was not disclosed.

“American entities have strongly showcased or demonstrated interest by participating in our transparent process in identifying the developer of Mrima Hill,” Joho said in an interview.

“Within the next two, three weeks we should be able to award Mrima Hills to the successful bidder.”

The U.S. bidders include Meridian Mineral Holdings, which comprises engineering company Fluor Corp and Tetra Tech, and Frontier Minerals LLC, which includes rare earths startup ReElement Technologies. A third U.S.-affiliated consortium, Mrima Earth, is led by Critical Metals Corp, which is pursuing the Tanbreez rare earth project in Greenland.

The other bidders are Australia’s RareX in partnership with Iluka Resources and Kenyan-British joint venture Gem of Dreams.

Fluor previously built Iluka’s Eneabba rare earths refinery in Western Australia, although the companies are now competing for the Kenyan project. A representative of the Australian consortium said Fluor was not licensed to use intellectual property relating to the refinery.

“Should Fluor make use or appear to be making use of Iluka’s IP in designing and constructing a processing plant for Mrima Hill, there would be a high chance of legal action to ‌protect IP rights,” the representative said.

Fluor and Meridian did not immediately respond to requests for comment.

PROCESSING PUSH

Kenya’s interest in Mrima Hill comes as governments seek to secure supplies of critical minerals needed for the energy transition, advanced manufacturing and defence industries.

China dominates the processing of several rare earth elements and controls much of the global supply chain, prompting the United States and its allies to seek alternative sources of supply.

U.S. President Donald Trump’s administration has made access to critical minerals a strategic priority, pursuing agreements with African countries to reduce dependence on Chinese production and processing.

African governments are also seeking to capture more economic value from their mineral resources by moving beyond exports of unprocessed ores to domestic refining and manufacturing.

Kenyan President William Ruto told Reuters in June that his government was close to signing a critical minerals agreement with Washington under which Kenya would process its resources locally.

U.S. officials have also said Washington intends to support the development of Kenya’s mineral-processing industry.

A U.S. State Department spokesperson told Reuters that American companies had established track records and a commitment to local processing.

“The US Government will take every opportunity to help American businesses invest in emerging sectors and developing economies, including the mining sector,” the spokesperson said.

Joho said Kenya had faced “no pressure” from either Washington or Beijing over the Mrima Hill project.

“I don’t think it is in the place of anybody to tell us on how and who to work with. Our decisions purely are informed ⁠on the interest of this country.”

Kenya is also believed to have significant untapped deposits of lithium, graphite, copper and nickel, minerals used in batteries, electrical wiring, energy storage and industrial manufacturing.

Omar Victor Diop (Senegal)

Most Famous Photo: Images from his series “Project Diaspora” or “Portrait Session,” which re-imagine historical
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