MP Materials (NYSE: MP) has signed a memorandum of understanding (MoU) with Saudi Arabia鈥檚 state miner Ma鈥檃den to develop a rare earths supply chain in the kingdom, from mining to magnet production.
The agreement, signed during the US-Saudi Investment Forum 2025 in Riyadh, outlines plans for cooperation across the entire value chain鈥攆rom exploration and mining to separation, refining, and permanent magnet production.
The deal is another step for the kingdom to accelerate its ambitions of becoming a global critical minerals hub.
鈥淭his partnership is a key step in making mining the third pillar of the Saudi economy,鈥� Ma鈥檃den CEO Bob Wilt said in a news release.
MP Materials CEO James Litinsky said the deal would help 鈥渞ebalance the global supply chain, particularly for robotics and physical AI,鈥� while strengthening US-Saudi strategic ties.
Saudi Arabia has ramped up efforts to attract foreign investment and expertise into its minerals sector as part of Vision 2030. The kingdom is positioning itself as a reliable alternative to China, which currently accounts for 70% of global rare earth ore extraction and 90% of processing.
Last year, the country increased the valuation of its unexploited mineral resources from聽$1.3 trillion to $2.5 trillion, boosted by聽the discovery of rare earth elements and metals.
The MoU follows MP Materials鈥� recent decision to stop shipping rare earth concentrate to China, after Beijing imposed new export restrictions.
The company produces rare earths at its Mountain Pass mine in California, the only rare earth mining and processing facility in the United States, where it is also expanding its domestic refining capacity. In the last quarter, MP Materials produced 12,213 metric tons of concentrate, up 10% from the same period last year.
Shares of MP Materials rose 3% on the news in New York, lifting the company鈥檚 market capitalization to $3.49 billion.