MP Materials and Pentagon Form Rare Earths Joint Venture with Saudi Arabia
MP Materials and the U.S. Department of Defense will collectively hold a 49% stake in a new Saudi rare earths refinery joint venture, with Saudi mining company Maaden retaining at least 51%. The deal, which sent MP's shares up 9%, is fully funded by the U.S. government, with MP providing technical and marketing support. The venture is designed to ensure American oversight, aligning with national defense and security objectives.
The refinery will supply critical rare earth materials for military systems, electric vehicles, clean energy infrastructure, and semiconductors. MP is also in separate discussions to establish local magnet production in Saudi Arabia, further reducing reliance on Chinese manufacturing. This agreement builds on a July pact between MP and the Pentagon, which included equity stakes, price floors, and supply guarantees.
