Mentioned:
The Department of War and MP Materials are on a mission to reshape the future of the global rare earth supply chain. Which is exactly why they’ve just formed a new partnership in Saudi Arabia.
What’s happening:
- MP Materials (NYSE: MP) and the United States Department of War have entered into a a joint venture with Saudi Arabian Mining Company to build a new rare earth refinery in Saudi Arabia
Why it matters:
- The new partnership is the first ever joint venture established between a Saudi Arabian company, the American government and a publicly traded company in the United States for developing a rare earth supply chain that is not reliant on China
Going deeper:
- MP Materials and the Department of War will own a 49% equity stake in the joint venture and Saudi Arabian Mining Company will own 51%
- The new rare earth refinery will proceed feedstock that is mined within Saudi Arabia and other regions globally to be processed into both separated light and heavy rare earth oxides
The intrigue:
- Both the United States Department of War and Saudi Arabia’s Ministry of Energy and Ministry of Industry and Mineral Resources have committed funding to the new joint venture project
