MP Materials Corp. (NYSE:MP) surged 7% on Wednesday after revealing a new joint venture with the U.S. Department of War and Saudi Arabian Mining Company (Maaden) to build a rare earth refining facility in Saudi Arabia.
The definitive agreement stems from a broader U.S.–Saudi strategic initiative announced in Washington, D.C., aimed at securing critical mineral supply chains. The partnership is designed to reshape the global rare earth ecosystem and bolster U.S. economic and national security priorities.
Per the terms of the deal, MP Materials and the U.S. Department of War are expected to share a combined 49% stake in the venture, while Maaden will retain at least 51%. The U.S. government plans to fully fund its portion through non-recourse financing, and MP will provide the refinery’s technical backbone, including its expertise in separation, processing, and international marketing of rare earth elements.
“We are honored that the U.S. government asked MP to partner on a project of this magnitude and importance for America and its allies,” said James Litinsky, Founder, Chairman & CEO of MP Materials. “By combining MP’s technical expertise with the strategic vision of the U.S. Department of War and Maaden’s capabilities and scale, the pieces are in place to fundamentally strengthen and diversify the supply chain.”
The planned facility will convert rare earth feedstock sourced from Saudi Arabia and other global suppliers into separated light and heavy rare earth oxides, supporting industrial, manufacturing, and defense needs across both nations and their partners.
The project adds a global dimension to MP’s growing operations while complementing its sizable U.S. investments—over $1 billion committed to domestic manufacturing expansions, including the enhancement of heavy rare earth separation at Mountain Pass, California, and the construction of an additional U.S.-based magnet production plant.