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MP Materials forms rare-earth refinery JV with Saudi Arabian Mining Company

MP Materials forms rare-earth refinery JV with Saudi Arabian Mining Company
MP Materials forms rare-earth refinery JV with Saudi Arabian Mining Company

MP Materials announced on Wednesday that it would form a joint venture for the refining of rare earths in Saudi Arabia, with the U.S. Department of Defense (DoD) and the Saudi Arabian Mining Company.

In premarket trading, shares of the company that operates the U.S.'s only rare earths mine, Mountain Pass in California, rose by more than 8%.

Saudi Crown Prince Mohammed bin Salman makes his first U.S. trip since 2018. He is hoping to promote the deepening of commercial ties between both countries.

During President Donald Trump's visit to the Middle East in May, the U.S. announced that it had invested billions of dollars into both Saudi Arabia and the U.S.

The company announced on Wednesday that the initiative builds upon its multi-billion dollar deal with the U.S. Government announced in July. It aims to increase output of rare earth magnetic materials and loosen China's hold on the materials needed to build weapons and electric vehicles, as well as many electronic devices.

In the agreement, MP Materials, the Defense Department, and a joint venture will each hold 49% of the company, while Maaden retains no less than 50%.

Trump has ordered that the Department of Defense renames itself as the Department of War. This change will require the action of Congress.

The company also said that it was in talks to support or work with Saudi Arabia on magnet manufacturing. (Reporting and editing by Krishna Chandra Eluri in Bengalluvila; Sriraj Kalluvila, Sriraj Menon)

(source: Reuters)