MP Materials stock is up more than 6% heading into the cash open after the company announced a rare earth refinery joint venture with Saudi Arabia's flagship mining company.

MP, the U.S. Department of War, and Saudi Arabia’s state mining giant Maaden have announced a joint venture to build a rare earth refinery in Saudi Arabia, marking one of the first major projects under a new U.S.–Saudi framework for critical mineral cooperation, the company wrote in a release this morning.

The venture is intended to diversify and stabilize the global rare earth supply chain, reducing reliance on adversarial sources while supporting manufacturing and defense needs in both countries and their allies.

The refinery will process rare earth feedstock from Saudi Arabia and other regions, producing separated light and heavy rare earth oxides for U.S., Saudi, and allied markets.

MP Materials CEO James Litinsky said, “We are honored that the U.S. government asked MP to partner on a project of this magnitude and importance for America and its allies,” adding that the agreement “underscores MP Materials’ role as an American national champion.” Maaden CEO Bob Wilt called the JV “a significant step forward in the development of this important global sector,” emphasizing its alignment with the Kingdom’s economic ambitions.

The structure of the venture ensures U.S. oversight, with MP and the DoW jointly holding a targeted 49% stake and Maaden holding at least 51%. The DoW will provide non-recourse financing for the U.S. share, while MP contributes technical expertise and global sourcing and marketing capabilities. MP is also in discussions to collaborate on magnet manufacturing in Saudi Arabia.

The deal complements MP’s ongoing multibillion-dollar public-private partnership with the DoW in the United States, including major investments in domestic refining, magnet manufacturing, and workforce expansion. Together, these efforts expand MP’s global footprint and deepen U.S.–Saudi economic and security ties while advancing a more resilient rare earth supply chain.

The news comes after a rare earth deal between the U.S. and China has still yet to be reached, as we wrote days ago. 

Despite Washington’s fanfare around the US–China “truce,” there is still no real rare-earth deal. China hasn’t clarified when it will issue the “general licenses” it promised, leaving exporters and buyers in wait-and-see mode. Analysts warn Beijing can use the licensing system as leverage, and, as Alicia Garcia Herrero put it, “The deal is far from done.” The White House may call the pledge a “de facto removal” of China’s curbs, but nothing material has changed.

This continued uncertainty has reinforced US concerns about dependence on Chinese supply chains and likely added momentum to the MP Materials–DoW–Maaden venture. With the China talks dragging on and confidence fading, Washington is accelerating efforts to secure non-Chinese refining capacity—making the Saudi joint venture a timely strategic hedge rather than an isolated project.