MP Materials rare earth refinery JV targets Saudi processing and allied supply chains

MP Materials

MP Materials rare earth refinery JV plans to establish a rare earth refinery in Saudi Arabia with support from the US Department of Defense. MP Materials rare earth refinery JV also brings in Saudi Arabian Mining Company Maaden to process regional and global feedstock. As a result, MP Materials rare earth refinery JV aims to supply separated light and heavy rare earth oxides for industrial and defense demand across allied markets.

Rare earth processing move links US security goals with Saudi industrial policy

The partnership aligns with a broader US-Saudi push on strategic industries and critical minerals. Meanwhile, the planned refinery would convert rare earth feedstock into separated oxides, which sit upstream of permanent magnets and advanced electronics. Therefore, the project targets a bottleneck that has constrained non-China rare earth supply chains for years.

The ownership structure also signals Saudi control with US-aligned participation. Maaden will own at least 51% of the joint venture, while MP Materials and the US Department of Defense will jointly hold up to 49%. The US side will use non-recourse financing for its stake, while MP Materials will provide technical capability, sourcing reach, and marketing access.

Magnet supply chains and allied markets move closer to diversification

The announcement reinforces earlier commitments between the companies. MP Materials and Maaden signed an agreement in May to build a fully integrated rare earth supply chain, and the new refinery represents a concrete processing step. However, the real strategic leverage will come from consistent feedstock access and predictable qualification of light and heavy oxides for defense-grade requirements.

Saudi Arabia also frames mining as a pillar of its economic diversification strategy. The country is using Vision 2030 to reduce oil dependence, and it wants mining to become a major GDP contributor. As a result, a rare earth refinery in Saudi Arabia could anchor downstream investment in permanent magnets, alloys, and advanced manufacturing over time.

The Metalnomist Commentary

This joint venture targets the highest-value chokepoint in rare earths: separation capacity for light and heavy oxides. Meanwhile, the structure blends Saudi scale with US security financing, which can accelerate execution. Therefore, buyers should watch qualification timelines and offtake structures for magnet-grade supply.