Waving the Rare Metals Card: How is Algeria Developing its Relations with Washington?

Dr. Mohamed Kawas, Progress Center for Policies

Policy Assessment

Introduction:

Amid U.S. pressure on Kyiv regarding a rare metals agreement, Algeria has offered the United States cooperation in Algerian economic sectors, including rare metals. This move is part of a series of recent developments that signal a new Algerian approach toward Washington, coinciding with tensions with Moscow and a shift away from Paris.

On March 9, 2025, Algerian Ambassador to Washington, Sabri Boukadoum, expressed his country’s strong desire to deepen economic cooperation with the United States. Observers saw this as a sign of Algeria’s pivot toward the Western camp after decades of alignment with the Eastern bloc. On March 7, he had urged the Trump administration to take advantage of Algeria’s potential in agriculture, renewable energy, natural resources, and tourism. He also stated that Algeria was ready to discuss a deal with the U.S. regarding its rare metal resources.
The Algerian proposal came as former President Donald Trump was pressuring Ukrainian President Volodymyr Zelensky to sign a $500 billion rare metals agreement as “financial compensation” for the military aid provided to Ukraine under the Biden administration.

Algeria holds 20% of the world’s rare earth reserves. Official Algerian reports indicate that the country exploits 31 mineral resources out of a total of 1,400 available nationwide. Until the end of 2020, the mining sector contributed only 1% to Algeria’s GDP. However, in 2024, Algeria opened the sector to investment, with expected revenues of around $150 billion.

Algeria was initially wary of Marco Rubio’s appointment as U.S. Secretary of State. As vice chairman of the U.S. Senate Intelligence Committee in 2022, Rubio had sent a letter to then-Secretary of State Antony Blinken calling for sanctions against Algeria due to its military ties with Russia. He expressed deep concern over Algeria’s arms purchases from Moscow.

Analysts believe Algeria is trying to dispel the perception of its ideological allegiance to the Eastern bloc by adopting a new pragmatic approach to developing advanced military and economic relations with the U.S. This shift comes amid cooling relations between Algeria and Russia due to diverging interests in the African Sahel region and Algeria’s concerns about Russian military presence there.

On January 27, 2025, just days after Donald Trump’s inauguration, Algeria and Washington signed an unprecedented military cooperation memorandum of understanding. The agreement was signed between General Michael Langley, Commander of the U.S. Africa Command (AFRICOM), and General Saïd Chengriha, Algerian Minister Delegate to the Minister of National Defense and Chief of Staff of the Algerian National People’s Army.

Diplomatic sources suggest that Algeria’s motivations are partly linked to its ongoing dispute with Morocco over Western Sahara. Trump had previously recognized Morocco’s sovereignty over Western Sahara, pledged to open a U.S. consulate in Dakhla, and considered designating the Algeria-backed Polisario Front as a terrorist organization. These sources indicate that Algeria seeks to temper Washington’s alignment with Morocco’s position on the issue.
Observers note that Algeria is trying to exploit Washington’s tensions with Europe to counteract the growing international support for Morocco’s autonomy plan for Western Sahara. This move follows French President Emmanuel Macron’s endorsement of Morocco’s proposal and a broader European shift toward recognizing Moroccan sovereignty over the territory.

U.S. affairs analysts believe that despite Trump’s stance on the Western Sahara issue—linked to Morocco’s participation in the 2020 Abraham Accords—Washington has an interest in enhancing economic cooperation with Algeria, complementing the progress made in bilateral relations in recent years.

Algerian sources recall that under former U.S. President Joe Biden, the Algerian National Agency for Hydrocarbon Development signed an investment agreement with U.S. company Chevron to explore Algeria’s offshore hydrocarbon resources. These sources expect the Trump administration to further strengthen economic cooperation and capitalize on Algeria’s potential in the mining and oil sectors.

Some factors, however, may hinder the smooth development of U.S.-Algerian relations. These include Algeria’s ties with Iran and its positions on other geopolitical issues such as Sudan. Some sources suggest that Algeria’s strategic shift regarding normalization with Israel is a tactical retreat aimed at removing ideological barriers that could obstruct closer ties with Washington.

Algerian sources emphasize that Algeria’s flexibility in foreign policy remains limited due to internal ideological constraints dating back to its independence in 1962. Any drastic shift—especially regarding normalization with Israel or relations with Iran—could face internal resistance that might undermine President Abdelmadjid Tebboune’s legitimacy.

Observers argue that while Algeria’s efforts may not lead to a complete realignment of historical U.S.-Algerian relations, they do present an opportunity for Washington to expand its influence and penetrate new strategic spaces traditionally dominated by global rivals.
Experts doubt that Algeria will undergo a radical shift in its strategic alignments. Instead, they suggest that expanding Algeria’s Western, particularly American, engagements will serve to strengthen its bargaining position with Russia and restore balance to historically strained relations, particularly in Africa, where recent Russian moves have surprised Algerians.

Conclusion:

– Algeria seeks to develop its relations with the U.S. in military, political, and economic spheres, revealing a new pragmatism that distances it from its traditional alignment with the Eastern bloc in global affairs.
– Algeria’s proposal to cooperate with Washington on rare metals represents an assertive move to attract U.S. interest, coinciding with Trump’s pressure on Ukraine for a similar agreement.
– Algeria aims to improve its standing with the Trump administration regarding the Western Sahara dispute, hoping to curb U.S.-European momentum in favor of Morocco.
– Algeria is expanding military cooperation with the U.S. as part of a broader strategy to recalibrate its relationship with Russia, following growing divergences over the Sahel region.
– Algeria has tactically adjusted its ideological stance on normalization with Israel, but its ties with Iran and reliance on Russian weaponry may limit the extent of its rapprochement with Washington.
– While Algeria is unlikely to abandon its traditional alignment with the Eastern bloc, it will leverage its growing ties with Washington to strengthen its position in negotiations with Russia.