On the 14 May, US-based MP Materials (MP) and Saudi Arabia’s (Saudi) state-owned Ma’aden have signed a Memorandum of Understanding (MoU) to develop a fully integrated rare earth supply chain in Saudi Arabia. The deal took place on the sidelines of the 2025 Saudi-U.S. Investment Forum in Riyadh.

The partnership between MP and Ma’aden aims to establish a complete rare earths value chain within Saudi; encompassing mining, separation, refining, and magnet production. This aligns with Saudi Arabia's Vision 2030, which aims to improve business opportunities within the country. The initiative aims to diversify the economy away from oil and gas and leverage Saudi’s Gulf location as a strategic focal point for trade.

MP aims to assist Ma’aden with exploration and processing expertise through experience learnt from MP’s operations at its Mountain Pass mine, near Las Vegas – Nevada, which it re-developed in 2018. Additionally, Saudi’s competitive energy costs will be advantageous for the downstream refining and magnetisation steps, which are  especially energy intensive.

Within the rare earths market, the desire to build ex-China supply chains is a common goal for Western producers aiming to close the ‘refining gap’. Friendshoring with Saudi would allow for the development of new supply chains. The MP – Ma’aden deal, alongside US President Donald Trump’s visit signals a future where the USA aims to build deeper commercial and geopolitical relationships in the Gulf, especially within the defence and critical materials space. However, the barriers of entry for the rare earths market should not be understated, downstream development for rare earths is technically challenging and costly, issues that have proven to be historical barriers for new Western entrants to the market.