On Wednesday, November 19, the US miner MP Materials experienced a sharp rise of 8.61 per cent in its stock movement to US$63.55 following a new rare earth refinery deal signed with the US Department of Defence and the Saudi Arabian Mining Company, Maaden.
The signing of the deal stemmed from the initial binding agreement between MP and Maaden to form a joint venture back in May, wherein MP agreed to hold 49 per cent of the shares in the JV, leaving the remaining 51 per cent for Maaden. The deal is also in line with a strategic cooperation framework between the United States and Saudi Arabia, signed this week in Washington, D.C., aimed at securing critical mineral supply chains. Saudi Crown Prince Mohammed bin Salman has pledged to invest USD 1 trillion in the US, signalling stronger long-term commercial ties.
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MP sees this refinery project as an opportunity to expand its footprint in critical minerals outside the United States, leveraging Saudi Arabia’s energy resources and infrastructure, while Saudi looks at this as a potential source of rare earth feedstock to produce light and heavy rare earth oxides.
This venture is built upon a multi-billion-dollar public-private partnership that MP and the DoW unveiled in July 2025. As part of MP’s long-term goal to strengthen its footprint in critical minerals, the miner also plans to invest up to USD 1 billion in the domestic market to expand refining capacity and build a second magnet facility. It also aims to enhance heavy rare earth separation at Mountain Pass, an area where global deficits remain acute.
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MP CEO James Litinsky said, “We are honoured that the US government asked MP to partner on a project of this magnitude and importance for America and its allies.” He added that the venture underscores MP Materials’ role as a key national champion for the United States.
Following the 8.6 per cent jump in share price, MP’s market value has come to USD 11 billion. Year-to-date, the stock is up nearly 290 per cent, further supported by the USD 400 million preferred-share purchase by the DoW.
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