Overview
- The binding three‑party venture will build a large Saudi refinery, with Ma’aden holding at least 51% and MP Materials plus the Pentagon targeting a combined 49% stake.
- The Defense Department will fund the U.S. contribution on a non‑recourse basis while MP supplies processing know‑how, sourcing and marketing capabilities.
- Designed to handle Saudi and international feedstock, the facility will produce separated light and heavy rare earth oxides for U.S., Saudi and allied defense and manufacturing customers, with talks under way on possible magnet manufacturing in the kingdom.
- MP shares rose about 9% on the news as Goldman Sachs initiated coverage with a Buy rating and a $77 target, joining other recent analyst upgrades.
- The deal builds on a July Pentagon package that included about $1.55 billion in support and a $110/kg NdPr price floor, as MP shifts to full vertical integration and advances U.S. refining and magnet capacity toward 2026 milestones.