Posted on 21 Nov 2025
Nevada-based rare earths producer MP Materials and the US Department of War have set up a joint venture with Saudi Arabian state-owned miner Maaden, Kallanish reports.
MP announced Wednesday that the JV will build a rare earth refinery in Saudi Arabia, processing feedstock mined both domestically and abroad. The company says the facility will produce “significant quantities of separated light and heavy rare earth oxides” without providing further detail.
The refined products will be shipped to manufacturing and defence buyers in the US and Saudi Arabia, as well as “marketed to allied nations,” MP adds.
Maaden will own 51% of the JV, while MP and the DOW will own 49% through a separate JV. The DOW will provide full financing for the US contribution of the JV, with MP providing expertise.
The agreement builds on MP’s existing public-private partnership with the US government, which is now its largest shareholder with a 15% stake. The miner says that it is also “in discussions to support or collaborate on magnet manufacturing” in Saudi Arabia.
The news comes a day after the US and Saudi Arabia signed a series of agreements across nuclear energy, artificial intelligence, defence, and critical minerals. Under a critical minerals framework, the two countries have committed to “deepening collaboration and aligning” national strategies to diversify supply chains. Following a commitment in May to invest $600 billion into the US, Riyadh increased its pledge to almost $1 trillion.
As customer engagement remains strong, particularly across verticals such as auto, aerospace, defence, electronics and robotics, Jefferies analysts expect MP to announce “one to two new OEM offtake agreements per quarter.” They add that the company should return to profitability in Q4 thanks to upside from recycling and higher neodymium praseodymium prices, which are estimated at around $41/kg.
At the time of writing, MP shares were trading 10% higher.
Source:Kallanish
