MP Materials (MP) has secured a transformative three-way joint venture with the U.S. Department of War and Saudi Arabian mining company, Maaden, to develop a major rare earth refinery in Saudi Arabia.
The agreement expands Western access to critical materials essential for defense systems and clean energy technologies and builds upon the LA-headquartered firm’s landmark deal with the Pentagon in July 2025.
MP Materials stock extended gains following the announcement today but remains down more than 35% versus its year-to-date high in mid-October.
MP shares rallied on Nov. 19 because the aforementioned deal deepens the company’s geopolitical relevance and supply chain integration and reinforces its role as a major U.S. supplier in a market dominated by China.
Together with the Pentagon deal in July that offered a guaranteed price floor of $110 per kilogram of neodymium-praseodymium oxide over the next decade, the joint venture improves MP’s growth prospects and margin potential.
Over time, it may translate to investor confidence in the firm’s global footprint, potentially driving its stock price to new all-time highs.
Note that MP Materials is challenging its 100-day moving average (MA) at the $65 level following today’s surge. A break above it could accelerate bullish momentum heading into 2026.
Goldman Sachs’ senior analyst Brian Lee also recommends buying MP Materials shares following the Department of War-Maaden deal on Wednesday morning.
Lee maintained his “Buy” rating and $77 price target on MP in a research note on Nov. 19, citing its dominant role in rare earth production and its strategic move toward vertical integration.
“MP’s expansion into refining and magnet production, accelerated by a partnership with US govt., will strategically position MP as a key supply chain component,” he told clients.
These developments, including the Pentagon deal, he believes, will improve the company’s margin and accelerate its revenue and EBITDA growth over time.
