Rare Earth Race: US Rare Earth Group to Build a Plant in Saudi Arabia

According to a report by the Financial Times on Thursday, US rare earth group MP Materials is collaborating with the US Department of Defense and Saudi Arabian Mining Company (Maaden) to build a rare earth processing plant in the Gulf kingdom of Saudi Arabia.

The company, headquartered in Nevada, announced its partnership with Maaden at the US-Saudi Business Forum held in Washington. The report stated that the factory will process raw materials from Saudi Arabia and other regions, supplying rare earths for the manufacturing and defense sectors of the US and Saudi Arabia.

Rare earths are key materials for manufacturing permanent magnets, which are widely used in the defense, energy, and technology industries. China controls most of the global rare earth production, prompting Western countries to develop alternative supply chains.

Just this week, President Donald Trump met with Saudi Crown Prince Mohammed bin Salman in Washington, and this agreement was also announced. It is part of multiple agreements between the two countries.

Under the agreement, Saudi Arabian Mining Company (Maaden) will hold at least 51% of the shares in the joint venture, while MP Materials and the US government will collectively hold up to 49% of the shares. The US Department of Defense will provide financing, but specific details have not been disclosed yet.

The factory will produce heavy rare earths and light rare earths, which are currently mainly produced by China.

MP Materials produces light rare earths from its mines in the US. The company is building an independent heavy rare earth processing plant in the US.

Saudi Arabia is expanding its mining industry to achieve economic diversification and reduce its reliance on oil. Saudi Arabian Mining Company (Maaden), which is controlled by the Saudi sovereign wealth fund, is working to develop domestic resources, expecting its reserves to reach $2.5 trillion.

According to the Financial Times, earlier this year, the US government acquired shares in MP Materials and provided a minimum price guarantee for some of its products.

Source: miningmx

Original: www.toutiao.com/article/1849456304838727/

Statement: This article represents the views of the author himself.