MP Materials Corp. (NYSE: MP) has announced a strategic joint venture with the U.S. Department of War (DOW) and the Saudi Arabian Mining Company (Maaden) to develop a rare earth refinery in Saudi Arabia. The joint venture is a significant step towards diversifying the global rare earth supply chain and aligns with U.S. economic and national security interests.
Under the agreement, MP Materials and the DOW will hold an equity position targeted at 49% in the joint venture, with Maaden holding a position of no less than 51%. The U.S. contribution to the joint venture will be financed non-recourse by the DOW. MP Materials will contribute its technical expertise in rare earth separation and refining, as well as global sourcing and marketing capabilities.
This joint venture follows MP Materials' multibillion-dollar public-private partnership with the DOW, announced in July 2025. MP Materials is investing over $1 billion and hiring more than 1,000 manufacturing workers in the United States to expand domestic refining and magnet manufacturing capacity.
MP Materials currently operates the world’s second-largest rare earth mine in Mountain Pass, California, and manufactures the world’s strongest and most efficient permanent magnets at its Independence Magnetics facility in Texas. The company's flagship customers include Apple, General Motors, and the U.S. Department of War.
The joint venture is seen as a pivotal step toward rebalancing the global rare earth supply chain and leveraging Saudi Arabia’s competitive energy base, infrastructure, and untapped rare earth resource potential to advance a stable and secure supply chain for rare earth materials. This move is expected to deepen economic and security ties between the United States and Saudi Arabia and support industrial resilience without reliance on adversarial sources.
The formation of the joint venture underscores MP Materials’ role as an American national champion and demonstrates its fully integrated platform's ability to project U.S. industrial capability abroad. The joint venture is expected to significantly expand MP’s global footprint, further driving shareholder value and positioning MP to lead in the global sourcing and refining of rare earth element-rich feedstocks. Following these announcements, the company's shares moved 8.02%, and are now trading at a price of $63.20. If you want to know more, read the company's complete 8-K report here.
