On Wednesday, US rare earth giant MP Materials (NYSE: MP) signed a memorandum of understanding with Saudi Arabia’s state mining company Ma’aden, aiming to jointly develop a complete rare earth supply chain in Saudi Arabia, covering everything from mining to magnet manufacturing.
The agreement was officially signed during the 2025 US-Saudi Investment Forum in Riyadh, marking a significant step in Saudi Arabia’s strategic push to become a global hub for critical minerals.
Following the announcement, MP Materials’ stock price rose 3%, with its market capitalization climbing to $3.49 billion.
Under the agreement, both parties will engage in comprehensive cooperation on rare earth mineral exploration, mining, separation, refining, and permanent magnet production. MP Materials CEO James Litinsky said the move will “rebalance the global supply chain, particularly in robotics and physical AI sectors,” while also deepening the US-Saudi strategic partnership. Ma’aden CEO Bob Wilt emphasized that the partnership represents a key step in making mining the “third pillar” of Saudi Arabia’s economy.
As part of its “Vision 2030,” Saudi Arabia seeks to boost its mining competitiveness by attracting foreign investment and advanced technology, aiming to create a reliable supply chain alternative outside China. Currently, China accounts for 70% of global rare earth mining and 90% of processing capacity. Saudi Arabia has recently raised its estimated value of undeveloped mineral resources from $1.3 trillion to $2.5 trillion, driven in part by newly discovered rare earth deposits.
Previously, MP Materials decided to halt exports of rare earth concentrates to China. The company operates the only rare earth mine in the US—California’s Mountain Pass mine—and continues to expand domestic refining capacity. The latest financial report shows quarterly concentrate output reached 12,213 metric tons, up 10% year-over-year.
With this partnership, Saudi Arabia further strengthens its global resource position, while MP Materials enhances supply chain resilience, underscoring the strategic importance of the rare earth industry amid shifting geopolitical and economic landscapes.
