Overview
- MP Materials and the U.S. Department of Defense will hold a combined 49% stake in the venture, with Maaden owning at least 51%.
- The Defense Department will finance the U.S. share on a non-recourse basis, while MP will provide technical and marketing expertise.
- The planned facility will process Saudi and global feedstock into separated light and heavy rare-earth oxides for U.S., Saudi, and allied uses.
- MP Materials’ shares rose about 9% following the announcement, coinciding with Goldman Sachs initiating coverage at Buy with a $77 price target.
- MP is in discussions about a potential collaboration to add magnet manufacturing capacity in Saudi Arabia, which remains under development.