MP Materials, Ma‘aden Partner to Develop Saudi Rare Earth Supply Chain

MP Materials, a U.S.-based rare earth mining company, has announced a significant partnership with Ma‘aden, the flagship mining company of Saudi Arabia. The two entities have signed a memorandum of understanding to jointly develop Saudi Arabia's rare earth supply chain. This agreement was formalized during the U.S.-Saudi Investment Forum, where Saudi Arabia pledged 60 billion dollars in investments across energy, defense, and mining sectors, with the presence of Donald Trump.

This collaboration comes at a time when mineral processing is becoming increasingly crucial for technologically advanced economies. These economies are striving to produce essential materials for industries such as artificial intelligence and electric vehicles independently. Saudi Arabia has been actively working towards becoming a global hub for key minerals, and this partnership with MP Materials is a strategic move in that direction.

The cooperation between MP Materials and Ma‘aden will encompass the entire rare earth supply chain, including the extraction, separation, refining of rare earth minerals, and the production of magnets. This comprehensive approach aims to establish a robust and self-sufficient rare earth industry in Saudi Arabia, reducing dependence on external suppliers.

James Litinsky, the CEO of MP Materials, highlighted the strategic importance of this partnership. He stated that the agreement marks a crucial first step in rebalancing the global supply chain, particularly in sectors like robotics and physical artificial intelligence. This collaboration also aims to deepen the strategic alliance between the U.S. and Saudi Arabia.

Bob Wilt, the CEO of Ma‘aden, echoed similar sentiments, emphasizing that this partnership is essential in establishing mining as the third pillar of Saudi Arabia's economy. The collaboration is expected to drive significant economic growth and technological advancement in the region, positioning Saudi Arabia as a key player in the global rare earth market.