Wedoany.com Report-Nov. 20, MP Materials (MP.N) announced on Wednesday that it will construct a new rare earths refining facility in Saudi Arabia through a partnership involving the U.S. Department of Defense and Saudi Arabian Mining Company (Maaden), the state-owned mining group.

A view of the MP Materials rare earth open-pit mine in Mountain Pass, California, U.S. January 30, 2020.

The joint venture will see MP Materials and the U.S. Department of Defense collectively hold a 49% stake in the refinery, while Maaden will own the majority 51% share. The plant will process rare earth concentrates sourced from Saudi Arabia and other locations into separated heavy and light rare earth oxides for commercial and defense applications.

The refined products are intended for use in manufacturing and defense industries in both the United States and Saudi Arabia, as well as for supply to allied countries, MP stated.

The announcement coincides with expanding international cooperation in critical minerals processing. The facility will help address growing global demand for rare earth elements essential to electric vehicles, renewable energy systems, consumer electronics, and various industrial technologies.

MP Materials, which operates the Mountain Pass rare earth mine in California — currently the only active rare earth mining and processing operation in the United States — has received prior investment support from the U.S. Department of Defense. A Pentagon funding agreement completed in July positioned the U.S. government as the company’s largest shareholder.

Shares of MP Materials rose approximately 10% following the announcement.

The Saudi project builds on MP’s ongoing efforts to establish integrated rare earth supply chains outside traditional concentration areas. The company already supplies separated rare earth materials to major manufacturers including Apple (AAPL.O) and General Motors (GM.N).

The new refinery will employ advanced separation technology capable of handling the full suite of 17 rare earth elements, including heavy rare earths such as dysprosium and terbium, which are particularly important for high-performance permanent magnets used in electric motors and defense systems.

MP Materials is also engaged in discussions regarding potential collaboration on downstream rare earth magnet production within Saudi Arabia.

The initiative supports Saudi Arabia’s broader strategy to develop its mining sector as part of economic diversification efforts under Vision 2030, while advancing U.S. objectives to strengthen resilient supply chains for materials vital to technology and national requirements.

Construction details, capacity figures, and an operational timeline for the Saudi refinery will be finalized as the partnership progresses through technical and planning phases.

Separately on Wednesday, an MP Materials executive testified before a U.S. congressional committee, advocating continued government support for domestic and international critical minerals processing and manufacturing capabilities.