The Saudi Arabian Mining Company (Maaden) has entered into a memorandum of understanding (MOU) with MP Materials, a U.S.-based rare-earth materials company, to establish a comprehensive rare earth supply chain in Saudi Arabia. The agreement encompasses mining, separation, refining, and magnet production, aiming to strengthen industrial capabilities and support downstream industries.

The agreement marks a step towards advancing and de-risking the development of potential REE deposits in Saudi Arabia.

Signed during the US-Saudi Investment Forum 2025 in Riyadh, the MOU underscores the economic collaboration between Saudi Arabia and the United States, focusing on securing critical mineral supply chains. In April 2025, Maaden launched a process to select an international partner for rare earth processing, with the goal of positioning Saudi Arabia as a global hub for critical minerals.

Maaden CEO Bob Wilt emphasized the partnership’s significance, stating: “Through a potential partnership with MP Materials, and our deepening ties with the US, we aim to create a global hub for a fully integrated rare earth value chain supporting advanced manufacturing in the kingdom. As we continue to build mining as the third pillar of the Saudi economy, this is an integral step in the exploration and development of minerals that will drive economic and industrial growth for the kingdom.” The initiative aligns with Saudi Arabia’s strategy to diversify its economy through mineral development.

The agreement supports the exploration and development of potential rare earth element (REE) deposits in Saudi Arabia, enhancing the country’s role in the global critical minerals market. Leveraging Saudi Arabia’s competitive energy resources, robust infrastructure, and strategic geographic location, the partnership seeks to meet growing demand from industries such as technology and manufacturing.

MP Materials founder, chairman, and CEO James Litinsky highlighted the broader impact, stating: “This announcement is an important first step towards rebalancing the global supply chain in a moment of transformational growth fuelled by emerging technologies – especially in robotics and physical AI – while deepening the strategic alliance between the United States and Saudi Arabia.” The collaboration aims to diversify the global rare earth supply chain, addressing the needs of rapidly expanding sectors.

This MOU represents a strategic effort to advance Saudi Arabia’s mining sector while fostering international cooperation. By developing a fully integrated rare earth value chain, Maaden and MP Materials aim to drive innovation, support industrial growth, and contribute to the global supply of critical minerals essential for emerging technologies.