Saudi Arabian mining company Ma’aden is in the process of selecting an international company to establish a rare earths processing partnership, aiming to position the kingdom as a critical minerals hub, reported Reuters, citing three sources familiar with the matter.
The company is evaluating potential collaborations with MP Materials from the US, China’s Shenghe Resources, Australia’s Lynas Rare Earths or Canada’s Neo Performance Materials.
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Ma’aden plans to finalise its decision by the end of June. The companies will develop plans for both a rare earths processing facility and a subsequent magnet production facility within Saudi Arabia.
The chosen partner will collaborate with Ma’aden to study the most effective methods for mining and processing the kingdom’s abundant mineral reserves. The study is expected to be completed by December.
Saudi officials nearly doubled the estimated value of the kingdom’s mineral reserves to $2.5trn (SR9.38trn) last year, mainly due to the inclusion of rare earth elements.
While Ma’aden and MP Materials have refrained from commenting, Lynas has acknowledged its ongoing discussions with emerging rare earths companies globally.
Among the contenders, Shenghe and Neo have experience in rare earths processing and magnet production.
The refinement of rare earths, a group of 17 chemically similar metals, is a complex and environmentally challenging process. The search for more efficient methods is ongoing, given the intricate separation required for these metals.
China’s dominance in the rare earths refining industry, controlling nearly 90% of the global capacity, underscores the strategic importance of Saudi Arabia’s move.
Saudi Arabia’s focus on mining aligns with Crown Prince Mohammed Bin Salman’s Vision 2030, which aims to diversify the economy beyond its traditional reliance on oil.
The country is ramping up its presence in the global minerals supply chain through major investments and strategic partnerships.
Under its National Investment Strategy, it plans to invest $9.32bn in smelting projects with India’s Vedanta and China’s Zijin.
The kingdom’s sovereign wealth fund backs US-based electric vehicle maker Lucid, which opened a Saudi plant in 2023.
The country has also signed memorandums of understanding with Hastings Technology Metals and Critical Metals for rare earth and lithium projects.
In February 2025, Ma’aden secured $1.25bn from its first Islamic bond issuance, a key step in its $12bn expansion plan through 2030.
