Harena Rare Earths (LON: HREE) has secured US government backing for its Ampasindava rare earths project in Madagascar, underscoring Washington’s strategy to challenge China’s dominance of critical minerals supply chains. Strategic shiftThe Ampasindava ionic clay deposit contains neodymium, praseodymium, dysprosium and terbium; rare earth elements used to manufacture permanent magnets for electric vehicles, wind turbines and defence systems including fighter jets and precision-guided missiles. China dominates global rare earth mining and processing and has reinforced its grip on supply chains through export controls, prompting Western governments to seek alternative sources of supply. Harena expects Ampasindava to produce about 4,000 tonnes of rare earth oxides annually, including 1,700 tonnes of high-value magnet rare earths NdPr and DyTb. Processing optionsHarena is also evaluating processing options in the US and Europe, with MP Materials (NYSE: MP), USA Rare Earth (NASDAQ: USAR) and Solvay (EBR: SOLB) among potential refining partners.