Maaden will hold 51% of the JV while MP Materials and the U.S. Department of War together have a combined 49% stake.
MP Materials Corp. (MP) stock jumped 8.5% in premarket trading on Wednesday after announcing a three-way joint venture with Saudi Arabia’s state-owned miner Maaden and the U.S. Department of War (DoW) to build a major rare-earth refinery in the kingdom
MP stock was among the top-trending tickers on Stocktwits.
What Does The Deal Entail?
Under the agreement, Maaden will hold 51% of the joint venture, while MP Materials and the DoW together will have a 49% stake. The DoW will provide financing for the U.S. portion of the investment, and MP will provide its technical expertise in rare-earth separation, refining, sourcing, and marketing.
The facility will process rare-earth feedstock from Saudi Arabia and other international sources, producing significant volumes of separated light- and heavy-rare-earth oxides. These refined materials will supply manufacturing and defense industries in both the United States and Saudi Arabia and will also be available to allied markets.
MP is also exploring opportunities to support or collaborate on magnet production within Saudi Arabia.
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