Saudi Arabia and MP Materials Forge Strategic Rare Earths Partnership to Diversify Global Supply Chains

In a significant move to diversify global supply chains and bolster its mining sector, Saudi Arabia has signed a memorandum of understanding (MoU) with U.S.-based MP Materials to develop an integrated rare earth elements (REE) supply chain within the Kingdom. The agreement, announced during the U.S.-Saudi Investment Forum 2025 in Riyadh, aims to establish a comprehensive value chain encompassing mining, separation, refining, and permanent magnet production.

This collaboration aligns with Saudi Arabia’s Vision 2030 initiative, which seeks to diversify the nation’s economy beyond oil by developing key sectors such as mining. The Kingdom has identified its vast mineral wealth, estimated at $2.5 trillion, as a cornerstone for future economic growth.

MP Materials, known for operating the only integrated rare earth mining and processing site in the U.S., brings expertise in extracting and processing REEs essential for advanced technologies, including electric vehicles, wind turbines, and defense systems. The partnership is expected to enhance the resilience of global supply chains, particularly in the face of recent export restrictions by dominant producers.

Ma’aden, Saudi Arabia’s leading mining company, views this agreement as a pivotal step in establishing mining as the third pillar of the national economy. By leveraging the Kingdom’s strategic location, infrastructure, and energy resources, the partnership aims to position Saudi Arabia as a global hub for critical minerals.

The MoU also reflects a broader strategic alignment between Saudi Arabia and the United States, emphasizing cooperation in securing critical mineral resources vital for emerging technologies and national security. As the demand for REEs continues to rise, this partnership represents a proactive approach to building a diversified and sustainable supply chain.