US rare earths group to build Saudi facility

MP Materials is teaming up with the US defence department and Saudi Arabia’s state mining company to build a rare earths processing plant in the Gulf kingdom, said the Financial Times on Thursday.The Nevada-based company announced the partnership with Maaden during a US-Saudi business forum in Washington. The facility will process raw materials from Saudi Arabia and elsewhere to supply American and Saudi manufacturing and defence sectors, the newspaper said.Rare earths are essential for making permanent magnets used across defence, energy and technology industries. China controls most global production, prompting Western nations to develop alternative supply chains.The deal emerged as President Donald Trump hosted Saudi Crown Prince Mohammed bin Salman in Washington this week. It forms part of several agreements between the two countries.Under the arrangement, Maaden will hold at least 51% of the joint venture, whilst MP Materials and the US government will own up to 49% combined. The defence department will provide financing, though details were not disclosed.The plant will produce both heavy and light rare earths, categories dominated by China. Beijing has tightened export controls this year, creating supply concerns in the West.MP’s American mine produces light rare earths. The company is building a separate US facility for heavy rare earth processing.Saudi Arabia is expanding mining as part of efforts to diversify beyond oil. Maaden, majority-owned by the kingdom’s sovereign wealth fund, is pursuing growth in domestic resources estimated at $2.5 trillion.Earlier this year, the US government took an equity stake in MP and guaranteed minimum prices for some of its output, said the Financial Times.The post US rare earths group to build Saudi facility appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com