MP Materials (NYSE: MP) has announced a joint venture with the U.S. Department of War and Saudi Arabia’s Maaden to build a rare earth refinery in Saudi Arabia. The partnership aims to enhance the global rare earth supply chain, reducing reliance on China, which currently dominates the market with a 60% share of mined supply. MP’s shares surged 8.2% following the announcement, bringing its market capitalization to nearly $11 billion.
The joint venture will allow MP Materials, which operates the only fully integrated rare earth production facility in the U.S., to contribute its technical expertise as part of a strategic alliance. MP and the DoW will hold a combined 49% stake in the venture, with Maaden retaining at least 51%. The facility will process rare earth materials sourced from Saudi Arabia and beyond, supporting both U.S. and Saudi manufacturing and defense sectors.
This initiative builds on a multi-billion-dollar public-private partnership outlined in July 2025, aiming for a $1 billion investment to expand rare earth refining and magnet manufacturing capabilities in the U.S. The refinery will produce significant quantities of separated rare earth oxides for both domestic use and allied nations.
