MP Materials, the biggest US-based rare earths producer, has signed a preliminary deal with Saudi miner Maaden. Together, they will chart the course for establishing a rare earths industry within the Middle Eastern kingdom. This joint effort aims to address the increasing global demand for rare earth elements. These elements are critical to most high-tech industries, including electronics and renewable energy manufacturing.
On Wednesday, the three companies took a big step in that direction. Taken separately, these moves consolidate their power within the global rare earths industry. By leveraging Saudi Arabia’s mining expertise alongside MP Materials’ established operations, the partnership could pave the way for new opportunities in rare earth production and supply.
Once complete, this mine will be the largest and most consequential rare earth mine in the United States. The mine became the cause célèbre of 2020. A compelling photo from the road from Reuters showed a wheel loader operator ejecting ore down the throat of a waiting truck. This operational expertise will prove invaluable as MP Materials further deepens its footprint into the Middle East.
Saudi Arabia’s Maaden plays a crucial role in the country’s mining sector, and its collaboration with MP Materials signifies a strategic move to diversify its mineral resources. SAUDI ARABIA—Saudi Arabia’s Vision 2030 initiative is an ambitious effort to lower the country’s long-standing reliance on oil. Building a resilient rare earths industry fits the bill beautifully.
In a related development, Shenghe Resources, a major Chinese player in the rare earths market and a strategic investor in MP Materials, is set to acquire Australian-listed explorer Peak Rare Earths. This acquisition further strengthens Shenghe Resources’ interests in the global rare earth supply chain. It fits with MP Materials’ long term plan to diversify and solidify its resource base while increasing production capacity.
Rare earths have distinctive properties that have made them crucial for contemporary industrial processes. Their applications range from electric vehicle batteries to wind turbines, making them essential for realizing our sustainability imperatives. At the same time, international demand for these elements is through the roof. Collaborative efforts like the one between MP Materials and Maaden will be core in meeting supply needs down the road.