MP Materials Corp. (NYSE: MP) announced a joint venture with the U.S. Department of Defense and Saudi Arabian Mining Company (Maaden) to construct a rare‑earth refinery in Saudi Arabia. The venture will give MP and the DoD a combined 49% equity stake, while Maaden will hold at least 51%.
Under the agreement, the U.S. government will provide non‑recourse financing for the U.S. portion of the refinery, and MP will contribute its world‑class technical expertise in rare‑earth separation and refining, as well as global sourcing and marketing capabilities. The refinery is intended to process feedstock from Saudi Arabia and other global sources to produce separated light and heavy rare‑earth oxides for U.S., Saudi, and allied defense and industrial customers.
The joint venture builds on a prior Memorandum of Understanding signed in May 2025 and a public‑private partnership announced in July 2025 that linked MP and the DoD. The new agreement formalizes the commitment to develop a full‑scale refinery that will leverage Saudi Arabia’s competitive energy base, infrastructure, and mineral resources while aligning with Saudi Vision 2030 to diversify its economy beyond oil.
Strategically, the refinery represents a key step in rebalancing the global rare‑earth supply chain and reducing U.S. reliance on China. By securing a domestic‑backed production facility in a geopolitically stable region, the partnership enhances national‑security interests for defense, electric‑vehicle, and high‑technology markets. The collaboration also positions Maaden to expand its rare‑earth portfolio and supports Saudi Arabia’s goal of becoming a major player in critical minerals.
MP Materials’ recent financial performance has been challenging, with revenue falling 19.6% to $204 million in fiscal 2024 and a loss of $0.61 per share for the twelve months ending June 30 2025. Operating margins have remained negative, at –46.4% as of November 2025. The joint venture is expected to provide a long‑term revenue stream and improve the company’s balance sheet by diversifying its product mix and securing a stable supply of feedstock.
The announcement was met with positive market sentiment, reflecting investor confidence in the strategic importance of the partnership and the potential for long‑term growth in the rare‑earth sector.
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