Ma'aden Eyes Foreign Partner for Rare Earths Processing
Deal News | Apr 08, 2025 | Zawya
Ma'aden, Saudi Arabia's leading mining company, is on the verge of forming a strategic partnership with at least one of four international firms to process rare earth minerals as part of its vision to become a global hub for critical minerals. The decision to collaborate with U.S.-based MP Materials, China's Shenghe Resources, Australia's Lynas Rare Earths, or Canada's Neo Performance Materials, is expected by end of June. This initiative is a cornerstone of Crown Prince Mohammed Bin Salman's Vision 2030, which aims to diversify the nation's economy beyond oil by developing a robust mining sector. The potential partners exhibit varying degrees of expertise in rare earth processing, which is crucial for technologies like electric vehicles and AI. The Saudi government is keen on retaining the complete supply chain within its borders, leveraging its significant mineral reserves estimated at $2.5 trillion. China's dominance in the rare earths market looms large with almost 90% of global refining capacity, and recent export restrictions by Beijing have intensified the geopolitical dynamics in this sector.
Sectors
- Mining and Minerals
- Renewable Energy and Electric Vehicles
- Manufacturing and Technology
Geography
- Saudi Arabia – The article is centered on Saudi Arabia's efforts to strengthen its mining sector in line with Vision 2030.
- United States – Several key potential partners, like MP Materials, are based in the United States, highlighting its strategic involvement in the project.
- China – China's Shenghe Resources is considered a potential partner, reflecting China's dominant global position in rare earths processing.
- Canada – Canada's Neo Performance Materials is one of the companies considered for partnership, showing the international scope of the endeavor.
- Australia – Australia's Lynas Rare Earths is another major player being considered by Ma'aden, indicating Australia's role in the global rare earths market.
Industry
- Mining and Minerals – The article focuses on Ma'aden's plans to develop a rare earths processing facility in Saudi Arabia, indicating its growing emphasis on mining and minerals as key sectors.
- Renewable Energy and Electric Vehicles – The minerals and rare earths targeted by Ma'aden are critical components in the manufacturing of electric vehicles and renewable energy technologies.
- Manufacturing and Technology – The processed rare earths are used in the manufacturing of tech products like magnets for electronic devices, aligning with Saudi's plans to boost its manufacturing sector.
Financials
- $2.5 trillion – Estimated value of Saudi Arabia's minerals reserves, reflecting the country's vast resource wealth.
- 35 billion riyals ($9.32 billion) – Investments by the Global Supply Chain Resilience Initiative in copper and zinc smelters and refineries.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ma'aden | Target Company | Company | Saudi Arabia's leading mining company, seeking partnerships to enhance its rare earths processing capabilities. |
| MP Materials | Potential Partner | Company | A U.S.-based company being considered as a partner for developing rare earths processing in Saudi Arabia. |
| Shenghe Resources | Potential Partner | Company | A Chinese firm with experience in rare earths processing, under consideration for partnership with Ma'aden. |
| Lynas Rare Earths | Potential Partner | Company | An Australian company focused on rare earths processing, being evaluated by Ma'aden for collaboration. |
| Neo Performance Materials | Potential Partner | Company | A Canadian firm experienced in rare earths processing and magnet production, considered for partnership. |
| Saudi Sovereign Wealth Fund | Investor | Government | The Saudi government's investment arm, controlling Ma'aden. |
| Saudi Government | facilitator | Government | Facilitating the mining sector development as part of Vision 2030. |