MP Materials gets another government deal, this time in Saudi Arabi

By Tomi Kilgore

Stock surges after the Trump administration brokers a deal to establish a joint venture to mine rare-earth minerals for both the U.S. and Saudi Arabia

MP Materials' stock was surging Wednesday after the rare-earth producer announced a partnership with the U.S. government to build a refinery in Saudi Arabia.

Shares of MP Materials charged higher Wednesday after the company said it has partnered with the Trump administration to establish a joint venture that will build a rare-earth refinery in Saudi Arabia.

The plan to form the joint venture with Saudi Arabia's flagship miner, the Saudi Arabian Mining Company (Maaden), comes after the U.S. and the Kingdom of Saudi Arabia agreed to cooperate on securing supply chains for critical materials following the meeting between President Donald Trump and Saudi Crown Prince Mohammed bin Salman in Washington, D.C., this week.

It also follows a contract that MP Materials signed in July with the U.S. Defense Department to boost rare-earth and critical magnet production in order to reduce dependence on foreign sources, notably China. That deal also included an equity investment in MP Materials by the U.S. government.

MP Materials' stock (MP) rallied 6.6% in recent morning trading. Shares of companies in the lithium business also got a lift, with Lithium Americas' stock (LAC) gaining 4.3% and Albemarle shares (ALB) advancing 2.9%.

Meanwhile, shares of MP Materials rival USA Rare Earth (USAR) fell 1.4%. The company's chief executive has said it is in direct contact with the Trump administration, but a direct government deal has yet to be announced.

Under terms of the agreement announced Wednesday, MP Materials and the Defense Department will own 49% of the joint venture, and Maaden will own no less than 51%. The joint venture will be structured so that the U.S. will have oversight and its operations will align with U.S. national-security objectives.

While financial details were not disclosed, the U.S. ownership stake will be fully paid for by the Defense Department, while MP Materials will contribute "technical expertise" in rare-earth separation and refining, as well as sourcing and marketing capabilities. MP is also in talks to work on magnet manufacturing in Saudi Arabia.

"By combining MP's technical expertise with the strategic vision of the U.S. Department of War and Maaden's capabilities and scale, the pieces are in place to fundamentally strengthen and diversify the supply chain," MP Materials Chief Executive James Litinsky said, referring to the unofficial name that the Pentagon has revived for the Defense Department.

The joint venture's facility will process rare-earth feedstock sourced from Saudi Arabia and other regions. The refined products will be used by the U.S. and Saudi manufacturing and defense sectors and will also be sold to other allies.

MP Materials shares have lost 37% since closing at a record $98.65 on Oct. 14 but have still gained 300% in 2025.

-Tomi Kilgore

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11-19-25 1011ET