MP Materials Jumps on New Strategic Refining Deal
MP Materials shares climbed nearly 9% on Wednesday after announcing a binding joint venture with the U.S. Department of Defense and Saudi mining giant Maaden to build a major rare earth refinery inside the kingdom.
Under the deal, MP Materials and the U.S. government will collectively hold 49%, while Maaden will control at least 51%. The Pentagon will fund the U.S. share, while MP provides technical and marketing expertise to stand up the refinery.
The agreement follows a memorandum of understanding signed in May and is designed to expand MP’s global footprint while maintaining U.S. oversight and national-security alignment.
Supporting a Non-China Rare Earth Supply Chain
The partnership fits into a broader U.S. strategy to secure rare earth elements — critical materials used in:
- advanced weapons systems
- electric vehicle motors
- clean energy technologies
- semiconductor equipment
- consumer electronics
The U.S. is seeking to reduce its reliance on China, which dominates global rare earth processing. The Pentagon previously entered a landmark deal with MP that included equity, price support, and long-term offtake.
MP is also exploring a collaboration to establish magnet manufacturing in Saudi Arabia, an essential downstream step for EV and defense supply chains.
CEO James Litinsky has positioned MP as America’s rare-earth “national champion,” and Wednesday’s expansion moves that narrative forward.
Wall Street Reaction
Goldman Sachs initiated coverage this week with a $77 price target, implying ~32% upside. The firm highlighted MP’s rapid vertical integration into refining and magnet production, accelerated by direct U.S. government partnership.
Goldman argued that this positions MP as a core strategic supplier for Western rare earth and magnet supply chains — both of which are undergoing a massive realignment.
WSA Take
This deal marks one of MP Materials’ most aggressive steps toward becoming a vertically integrated rare earth powerhouse. With Pentagon backing and Saudi capital, the company is now expanding beyond mining into large-scale refining and potentially magnet manufacturing — areas long dominated by China.
Execution risk remains, but the geopolitical tailwinds are unmistakable: governments are willing to write checks to secure these supply chains. For investors, MP is now firmly in the center of that policy engine.
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