Overview
- The binding three‑party venture will build a Saudi refinery to produce separated light and heavy rare‑earth oxides, expanding non‑Chinese processing capacity.
- Maaden will hold no less than 51% while MP Materials and the U.S. Department of Defense together target up to 49%, with the Pentagon providing non‑recourse financing for the U.S. stake.
- The facility is designed to process feedstock from Saudi Arabia and other regions, supplying U.S., Saudi and allied manufacturing and defense sectors.
- MP Materials shares rose about 8%–9% on Nov. 19 following the announcement, as Goldman Sachs initiated coverage with a Buy rating and a $77 price target.
- The deal extends the Pentagon’s July support package that includes funding, an equity stake and a $110/kg NdPr price floor, while MP advances U.S. heavy‑rare‑earth separation (target mid‑2026), magnet capacity and talks on Saudi magnet manufacturing.