The Sole Domestic Integrated Rare Earth Supplier Expands To Saudi Arabia

MP Materials Corp. (NYSE:MP) has announced the next step in building a resilient rare earth supply. The firm has formed a three-party joint venture with the Saudi Arabian Mining Company (Maaden) and the U.S. Department of War (DoW).

The purpose of the venture is to develop a large-scale rare earth refinery in Saudi Arabia, and it is part of the broader U.S.-Saudi framework on critical minerals.

"We are honored that the U.S. government asked MP to partner on a project of this magnitude and importance for America and its allies," MP Founder and CEO James Litinsky said.

Also Read: This Government-Owned Rare-Earth Stock Still Has Big Upside Ahead, Goldman Says

"By combining MP's technical expertise with the strategic vision of the U.S. Department of War and Maaden's capabilities and scale, the pieces are in place to fundamentally strengthen and diversify the supply chain," he added.

Technical Details

The refinery will process feedstock from Saudi Arabia and international sources, producing separated light and heavy rare earth oxides and supplying the U.S., Saudi, and allied defense and manufacturing sectors. Maaden will hold at least a 51% stake, while MP and the DoW joint venture will collectively hold up to 49%.

DoW will fully finance the U.S. contribution on a non-recourse basis, while MP contributes technical know-how and sourcing capabilities. The project will leverage the Kingdom's competitive energy base, major industrial infrastructure, and rising ambitions to become a commodity hub.

The venture builds on MP's rapidly expanding footprint and its strengthened public-private partnership with the U.S. government. The company is already deploying more than $1 billion domestically to boost heavy rare earth separation at Mountain Pass and construct its second U.S. magnet manufacturing facility. It also holds a separate $1.55 billion DoD funding package, which guarantees minimum pricing and stabilizes long-term economics—an arrangement Goldman Sachs describes as a structural derisking of the business model.

Support From The Street

Wall Street has taken notice. Goldman Sachs initiated coverage with a Buy rating and a $77 price forecast. The bank dubbed the firm "the only fully vertically integrated rare earth company in America."

Analyst Peter Oppenheimer pointed out that the firm's decision to stop shipping concentrate to China created the backbone of America's magnet and rare earth supply chain. The expectations are high, with $1 billion in anticipated earnings by 2030.

Oppenheimer noted that its role in the nation's vital supply chain mandates a valuation premium. Per estimates, the firm could supply more than half of the domestic NdPR oxides by 2030.

Price Action: MP stock was trading higher by 1.40% to $64.44 premarket at last check Thursday. The stock is up 307.37% year to date.

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