U.S. Department of Defense joins refinery project.
In May, the Saudi state-owned mining company Ma’aden and the U.S.-based MP Materials signed a memorandum of understanding to develop a fully integrated rare earth supply chain (we reported). The partnership is now taking shape. With U.S. Department of Defense participation, the two sides plan to establish a joint venture to build a rare-earth refinery in Saudi Arabia. The feedstock is expected to come from deposits within the Kingdom and from other regions. The facility will produce both light and heavy rare earth elements.
According to MP Materials, the company is also in discussions about how to support local production of rare-earth magnets. Saudi Arabia has been pursuing ways to diversify its economy and reduce its dependence on oil exports. The country sees strong potential in untapped mineral resources, including lithium, gold, and rare earth elements, valued at $2.5 trillion.
The latest agreement follows a series of deals between the United States and Saudi Arabia aimed at strengthening bilateral relations.
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