Saudi Arabia has advanced its push into critical minerals after state-owned miner Ma’aden signed a binding term sheet with U.S. producer MP Materials and the U.S. Department of War to establish a rare earth refining and separation facility in the Kingdom. The project would make Saudi Arabia one of the few countries outside China capable of processing both light and heavy rare earth oxides, which are essential for electric vehicles, clean energy systems and U.S. defence technologies.
Under the agreement, Ma’aden will hold at least 51 percent of the joint venture, while MP Materials and the U.S. government will together hold up to 49 percent. The U.S. Department of War will provide full, non-recourse financing for the American share, and MP Materials will supply technical expertise and global marketing capabilities. The refinery will process Saudi and international feedstock, with discussions also under way on potential downstream magnet manufacturing.
The deal, which follows preliminary talks earlier this year between Ma’aden and MP Materials, remains subject to final regulatory approvals. Key details—including the facility’s location, investment cost and production capacity—are expected to be announced later.
The agreement deepens U.S.–Saudi cooperation on critical minerals at a time of escalating global competition over supply chains. For Saudi Arabia, it marks a major step toward its Vision 2030 goal of building a world-class mining and industrial ecosystem. For the United States, the joint venture strengthens efforts to diversify rare earth processing away from China and secure strategic materials vital to defence and advanced industries.
