The United States has fired a $1.6 billion (KES 240 billion) salvo in the global resource war, with the Trump administration taking a direct equity stake in a rare earths firm to shatter China’s stranglehold on the minerals that power the 21st century.

In a move that rips up the free-market rulebook, Washington will become a shareholder in USA Rare Earth, signaling that the supply of minerals like neodymium and dysprosium—vital for everything from F-35 fighter jets to iPhone batteries—is now a matter of supreme national security. The deal comes just days after President Trump claimed to have secured a "framework" for access to Greenland’s deposits, further escalating the resource race.

The New Cold War is Geological

"This investment ensures our supply chains are resilient and no longer reliant on foreign nations," declared Commerce Secretary Howard Lutnick. The statement is a thinly veiled warning to Beijing, which currently processes over 85% of the world’s rare earth elements and has previously threatened to cut off supplies during trade disputes.

The implications for Africa, and specifically Kenya, are profound. The continent is the next frontier in this battle:

• The Kenyan Stake: Kenya sits on massive rare earth deposits at Mrima Hill in Kwale County, valued at over KES 6 trillion. The US move signals a likely intensification of Western diplomatic and economic pressure to secure these assets against Chinese bidders.
• Global Inflation: As the West decouples from Chinese supply chains, the cost of high-tech goods—from electric vehicles to medical MRIs—is likely to spike before stabilizing, impacting consumers in Nairobi and beyond.
• Militarization of Trade: The direct US government stake suggests that future mining contracts will be treated as defense pacts. African nations may soon be forced to choose sides: sell to Washington or sell to Beijing.

A "Manhattan Project" for Minerals

USA Rare Earth, now backed by the full faith and credit of the US Treasury, plans to build a fully integrated "mine-to-magnet" supply chain in Oklahoma and Texas. This vertical integration is exactly what African nations have failed to achieve, often exporting raw ore only to buy back finished products at a 1000% markup.

For the Global South, the lesson is stark: Strategic autonomy requires control over resources. As the US moves to secure its future, the race is on for Kenya to update its mining code and ensure that the wealth buried in Kwale benefits the people of Kwale, not just the geopolitical giants fighting for the spoils.