Pentagon, MP Materials and Maaden Launch Saudi Rare Earths Refinery

The Pentagon has joined Nevada-based MP Materials and Saudi mining giant Maaden to form a joint venture to build a rare-earths refinery in Saudi Arabia, part of a strategic push to reduce dependence on China.

Under the agreement the Department of Defense will fully finance the U.S. contribution and, together with MP Materials, aims to hold a 49% equity stake while Maaden will retain at least 51%. MP will supply technical expertise in separation processes and manage global sourcing and marketing for the refined output.

Officials say the facility will supply refined rare earths for U.S. and Saudi defense sectors, be offered to allied nations and bolster industrial resilience. The deal follows strategic supply-chain discussions between Washington and Riyadh during Crown Prince Mohammed bin Salman’s U.S. visit.

Saudi deposits such as Jabal Sayid are substantial: government estimates cite roughly 552,000 tonnes of heavy rare earths (dysprosium, terbium) and 355,000 tonnes of light rare earths (neodymium, praseodymium). Heavy rare earths are critical for high-performance permanent magnets used in guidance systems, motors, lasers, night-vision and sonar. Analysts warn Pentagon demand for rare-earth magnets could rise markedly, potentially tripling toward 10,000 tonnes annually by 2030.