MP Materials soars on Saudi Arabia rare earth joint venture

MP Products (NYSE: MP) has actually joined the United States Division of Battle (DoW) to create a joint endeavor in Saudi Arabia with Maaden, the kingdom’s front runner mining business, to develop an unusual planet refinery. Shares of the business climbed.

The development of this joint endeavor stands for “an essential action towards rebalancing the worldwide uncommon planet supply chain and straightens with United States financial and nationwide safety and security rate of interests,” MP said in a press release Wednesday.

The business is presently the only totally incorporated manufacturer of uncommon planet products in the United States, with procedures focused around its Hill Pass mine and handling center in The golden state and magnet manufacturing website in Texas.

The joint endeavor news comes a day after Saudi Crown Royal prince Mohammed container Salman promised to spend $1 trillion in the United States, additional strengthening the business connections in between both countries.

Shares of MP Products leapt by 8.2% throughout the very early hours of trading on the information, taking the Las Vegas-based miner’s market capitalization to almost $11 billion. Year to day, the supply has actually increased by almost 290%, buoyed by its collaboration with the United States federal government, consisting of a $400 million acquisition of the business’s recommended shares by the DoW.

Public-private collaboration

The Saudi JV improves the multi-billion-dollar public-private partnership that MP and DoW introduced in July 2025 to strengthen America’s uncommon planet supply chain and minimize its dependence on China, which controls the marketplace with a 60% share of mine supply and nearly all of the handling ability.

Under that collaboration, MP strategies to spend as high as $1 billion to dramatically broaden the United States uncommon planet refining and magnet production ability in the coming years. Among the crucial financial investments will certainly be the advancement of a 2nd magnet production center in the United States and a development of its hefty uncommon planet splitting up capacities at Hill Pass.

Before the DoW collaboration, MP had signed a memorandum of understanding with Saudi Arabia to establish an unusual earths supply chain in the kingdom, from extracting to magnet manufacturing. That arrangement was authorized throughout the US-Saudi Financial Investment Online Forum 2025 in Riyadh.

Saudi JV

The uncommon planet refinery JV prolongs America’s financial and safety and security connections with Saudi Arabia. It leverages the kingdom’s affordable power base, framework, critical area and substantial untapped uncommon planet sources, the events stated in a declaration.

When constructed, the center will certainly refine uncommon planet feedstock sourced from the kingdom and various other worldwide areas and generate substantial amounts of apart light and hefty uncommon planet oxides. The improved items will certainly sustain United States and Saudi production and protection markets and be marketed to allied countries.

Under the bargain, MP and the DoW, with a joint endeavor, will certainly hold a consolidated 49% risk, with Maaden preserving no much less than 51%. The DoW will certainly give complete funding for the United States payment, while MP will certainly add its technological competence in uncommon planet splitting up and refining. The business stated it is likewise in conversations to sustain or work together on magnet production in Saudi Arabia.

” We are recognized that the United States federal government asked MP to companion on a task of this size and value for America and its allies,” MP Products chief executive officer James Litinsky mentioned in a news release.

” The development of the joint endeavor likewise highlights MP Products’ duty as an American nationwide champ, and it shows exactly how our totally incorporated system can forecast United States commercial ability abroad.”