US, Saudi Arabia strike deal to build rare earths refinery in the Kingdom
Joseph Haboush - Al Arabiya English
Published: 19 November ,2025: 08:25 PM GSTUpdated: 19 November ,2025: 08:42 PM GST
Rare earths company MP Materials is partnering with the US military and Saudi Arabia’s flagship mining company to build a rare earth refinery in the Kingdom, in a move that aims to diversify the global critical minerals supply chain.
Saudi Arabian Mining Company (Maaden) and the Pentagon will create a joint venture to process rare earth materials from Saudi Arabia and other parts of the world to supply the US and Saudi manufacturing and defense sectors.
Washington and Riyadh signed the Critical Minerals Framework during Crown Prince Mohammed bin Salman’s visit to the White House this week to deepen collaboration to diversify critical mineral supply chains.
“The formation of a joint venture to build a rare earth refinery in Saudi Arabia is a pivotal step toward rebalancing the global rare earth supply chain and aligns with US economic and national security interests,” MP Materials said in a statement. “The joint venture will leverage Saudi Arabia’s competitive energy base, world-class infrastructure, strategic location, and significant untapped rare earth resource potential to advance a stable and secure supply chain for rare earth materials.”
MP CEO James Litinsky said the deal would fundamentally strengthen and diversify the supply chain, adding that it further aligns US and Saudi interests.
For his part, Maaden CEO Bob Wilt hailed the “significant step forward” in developing the sector. “I am proud of the role that Maaden plays as Saudi Arabia’s national mining champion, and through our significant growth ambitions, we will continue to develop this strategic sector as an integral pillar of the Kingdom’s economy,” Wilt said.
Under the deal, MP Materials and the Pentagon will hold 49 percent of the joint venture, and Maaden will have “no less than” 51 percent. The US military will finance the joint venture, not MP Materials. It is unclear how much that investment will be.
MP Materials said it was also in talks to support or collaborate on magnet manufacturing inside Saudi Arabia.
“The joint venture will also deepen economic and security ties between the United States and Saudi Arabia and support industrial resilience without reliance on adversarial sources,” MP Materials said.
MP Materials is expected to begin construction on its second magnet manufacturing facility in the US. The company operates the world’s second-largest rare-earth mine in California.