MP Materials and Dow Chemical of the United States announced the establishment of a rare earth refining joint venture in Saudi Arabia.

MP Materials, the U.S. Department of Defense (DoW), and Saudi Arabian Mining Company (Maaden) have established a joint venture (JV) to develop a rare-earth refining plant in Saudi Arabia. This collaboration follows the recent announcement by the United States and Saudi Arabia of a strategic framework agreement in Washington, D.C., aimed at strengthening the security of critical supply chains.

MP Materials stated that the joint venture represents a significant step toward rebalancing the global rare earth supply chain, aligning with U.S. economic and national security interests. The facility will leverage Saudi Arabia’s competitive energy base, advanced infrastructure, strategic location, and abundant untapped rare earth resources, aiming to ensure a stable and secure supply of rare earth materials. This refinery is designed to process raw rare earth materials sourced from Saudi Arabia and other regions, producing substantial quantities of both separated light rare earth oxides and heavy rare earth oxides (REO). These refined products will be supplied to manufacturing and defense industries in the United States and Saudi Arabia, as well as distributed to allied nations. James Litinsky, Founder, Chairman, and CEO of MP Materials, remarked: "We are honored that the U.S. government has invited MP to participate in this large-scale project, which is critical not only for the United States but also for our allies. By combining MP’s technical expertise, the U.S. Department of War’s strategic vision, and Maaden’s capabilities and scale, we’re laying the groundwork for fundamentally strengthening and diversifying the supply chain." The structure of the rare earth refining joint venture is carefully designed to ensure U.S. oversight while remaining fully aligned with national security objectives. Under the agreement, MP Materials and Dow Chemical will jointly hold 49% of the target equity stake through the joint venture, while Maaden will retain no less than 51% ownership. Dow Chemical will provide full, non-recourse financing to support the U.S.-based portion of the venture. In turn, MP Materials will contribute its proprietary rare earth separation and refining technologies, along with its extensive global procurement and marketing capabilities. Additionally, the company is exploring opportunities to either support or collaborate on magnet manufacturing initiatives within Saudi Arabia. Litinsky added: "This agreement will benefit MP Materials and the broader industry, while further aligning U.S. and Saudi interests. Moreover, the establishment of this joint venture underscores MP Materials’ position as a leading U.S. national champion and demonstrates how our fully integrated platform can extend America’s industrial strength onto the global stage. We are thrilled to partner with Maaden to create this transformative joint venture." The joint venture is expected to unlock significant global upstream resources, significantly expand MP Materials’ refining capacity, and drive robust growth across both its upstream and downstream operations. This initiative will deepen the economic and security ties between the United States and Saudi Arabia, bolstering industrial resilience without reliance on adversarial powers. It builds upon the multi-billion-dollar private partnership announced by MP Materials and Dow Chemical in July 2025. To support this collaboration and enhance domestic refining and magnet manufacturing capabilities, MP Materials is investing over $1 billion in the U.S., creating more than 1,000 manufacturing jobs.

These investments include expanding the heavy rare-earth separation operations located in Mountain Pass, California, as well as establishing a second magnet manufacturing plant in the United States.