MP Materials, Pentagon and Maaden Form Rare-Earth JV

MP Materials, the U.S. Department of Defense and Saudi Arabian Mining Company Maaden signed a binding agreement to build a rare-earth refinery in Saudi Arabia, sending MP stock higher.

MP and the Pentagon will collectively hold a 49% stake in the joint venture while Maaden will retain at least 51%. The Defense Department will finance the U.S. portion of the project; MP will contribute technical know-how and marketing capabilities. The deal follows a May memorandum of understanding and is structured to preserve U.S. oversight and align with national security objectives.

MP is also in talks to develop magnet manufacturing capacity in Saudi Arabia, extending its downstream ambitions. The arrangement complements a prior Pentagon agreement that included an equity stake, a price floor and offtake terms aimed at reducing U.S. reliance on Chinese rare-earth supply chains. Market analysts highlight that expanding refining and magnet production would position MP as a critical supplier for defense platforms, EVs, clean-energy technologies and semiconductor manufacturing.