HOME BLOG International News The United States and Saudi Arabia jointly promote rare earth refining joint venture project
The United States and Saudi Arabia jointly promote rare earth refining joint venture project
The US company MP Materials said on Wednesday (November 19, 2025) that it will establish a rare earth refining joint venture in Saudi Arabia with the US Department of Defense and the Saudi state-owned Saudi Arabian Mining Company (MAADEN). Stimulated by this news, MP Materials' stock price rose by more than 10% in early trading.
This will be one of the first major projects between the United States and Saudi Arabia under the new framework of cooperation on critical minerals. The joint venture aims to diversify and stabilize the rare earth supply chain while meeting the needs of the United States, Saudi Arabia and their allies in the manufacturing and defense fields.
The rare earth refinery will process rare earth raw materials from Saudi Arabia and other regions, produce light rare earth and heavy rare earth separated oxides, and supply the markets of the United States, Saudi Arabia and its allies.
This cooperation coincides with Saudi Crown Prince Mohammed bin Salman’s first visit to the United States since 2018 and is aimed at further deepening commercial relations between the two countries.
In May this year, during U.S. President Trump’s four-day visit to the Middle East, the United States and Saudi Arabia announced billions of dollars in two-way investment.
MP Materials said the plan builds on the multibillion-dollar cooperation it reached with the U.S. government in July this year, aiming to increase production of permanent magnet materials and help weaken competitors' dominance in key materials needed for weapons, electric vehicles and many electronic products.
According to the latest agreement, MP Materials and the U.S. Department of Defense will hold a combined 49% stake in the joint venture, and MAADEN will retain a controlling stake of no less than 51%.
It is reported that the U.S. Department of Defense will provide non-recourse financing for U.S. shares, while MP will contribute technical expertise and global procurement and marketing capabilities.
James Litinsky, CEO of MP Materials, said: "We are deeply honored that the U.S. government has invited MP Materials to participate in a project of this scale and significance." He added that this agreement highlights MP Materials' status as a national industry champion in the United States.
MAADEN CEO Bob Wilt called the joint venture a "key step in promoting the development of this important global industry" and emphasized that it is highly consistent with Saudi Arabia's economic vision.
Analysts said the agreement complements the multi-billion-dollar public-private partnership MP is advancing in the United States, covering key investments in domestic refining capacity, magnet manufacturing and workforce expansion. Overall, these measures have expanded MP's global industrial layout, deepened the economic and security ties between the United States and Saudi Arabia, and promoted the establishment of a more resilient rare earth supply chain.
This will be one of the first major projects between the United States and Saudi Arabia under the new framework of cooperation on critical minerals. The joint venture aims to diversify and stabilize the rare earth supply chain while meeting the needs of the United States, Saudi Arabia and their allies in the manufacturing and defense fields.
The rare earth refinery will process rare earth raw materials from Saudi Arabia and other regions, produce light rare earth and heavy rare earth separated oxides, and supply the markets of the United States, Saudi Arabia and its allies.
This cooperation coincides with Saudi Crown Prince Mohammed bin Salman’s first visit to the United States since 2018 and is aimed at further deepening commercial relations between the two countries.
In May this year, during U.S. President Trump’s four-day visit to the Middle East, the United States and Saudi Arabia announced billions of dollars in two-way investment.
MP Materials said the plan builds on the multibillion-dollar cooperation it reached with the U.S. government in July this year, aiming to increase production of permanent magnet materials and help weaken competitors' dominance in key materials needed for weapons, electric vehicles and many electronic products.
According to the latest agreement, MP Materials and the U.S. Department of Defense will hold a combined 49% stake in the joint venture, and MAADEN will retain a controlling stake of no less than 51%.
It is reported that the U.S. Department of Defense will provide non-recourse financing for U.S. shares, while MP will contribute technical expertise and global procurement and marketing capabilities.
James Litinsky, CEO of MP Materials, said: "We are deeply honored that the U.S. government has invited MP Materials to participate in a project of this scale and significance." He added that this agreement highlights MP Materials' status as a national industry champion in the United States.
MAADEN CEO Bob Wilt called the joint venture a "key step in promoting the development of this important global industry" and emphasized that it is highly consistent with Saudi Arabia's economic vision.
Analysts said the agreement complements the multi-billion-dollar public-private partnership MP is advancing in the United States, covering key investments in domestic refining capacity, magnet manufacturing and workforce expansion. Overall, these measures have expanded MP's global industrial layout, deepened the economic and security ties between the United States and Saudi Arabia, and promoted the establishment of a more resilient rare earth supply chain.
Release time: 2025-11-20
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