Saudi Arabia rare earth reserves rank fourth most valuable globally, according to assessments by the Saudi government and the Center for Strategic and International Studies (CSIS) — and in November 2025, the kingdom moved to monetise that position with a binding rare earth refinery joint venture involving MP Materials (NYSE: MP), the US Department of War, and state miner Maaden (Saudi Exchange: 1211).
Jabal Sayid — Saudi Arabia’s Key Rare Earth Deposit
The Jabal Sayid deposit sits approximately 350 km northeast of Jeddah in the Al-Mahd Governorate, Madinah Region, on the ancient Arabian Shield. CSIS and Saudi government assessments rank it the fourth most valuable rare earth reserve in the world. The deposit contains an estimated 552,000 tonnes of heavy rare earths — principally dysprosium and terbium — alongside approximately 355,000 tonnes of light rare earths, including neodymium and praseodymium. A co-located uranium resource of roughly 31,000 tonnes is separately under review as part of broader Saudi nuclear cooperation discussions with the United States.
Total Saudi rare earth reserves are estimated at approximately 3.2 million tonnes by the Saudi Geological Survey, representing around 1.5% of the global total. Adjacent unexplored Arabian Shield structures are expected to expand this figure as the kingdom’s exploration programme accelerates. Jabal Sayid is currently in the development stage — no commercial rare earth mining production has been confirmed at the deposit.
At the Future Minerals Forum in January 2026, Saudi Arabia’s Ministry of Industry and Mineral Resources launched the Mining Infrastructure Enablement Initiative, which includes a treated-water pipeline designed to reduce operational water costs at remote desert sites by up to 60%. The initiative is part of the infrastructure buildout required before Jabal Sayid and adjacent deposits can reach commercial production scale. See rare earth deposits ranked globally for a broader supply context.
Maaden, MP Materials and the US Refinery Joint Venture
On 19 November 2025, Maaden, MP Materials, and the US Department of War signed a binding term sheet to build a rare earth refining and separation facility in the Kingdom of Saudi Arabia. The agreement was announced in Washington DC alongside the US–Saudi Critical Mineral Cooperation Framework, signed during Crown Prince Mohammed bin Salman’s visit. Maaden holds a controlling stake of at least 51%; MP Materials and the Department of War jointly hold the remaining 49%, with the DoW providing non-recourse financing for the American portion.
The facility is designed to separate light and heavy rare earth oxides from feedstock sourced from Saudi Arabia and other global regions. Its primary stated purpose is to supply US and Saudi manufacturing and defence sectors with separated rare earth materials, reducing dependency on Chinese separation capacity. The project has been described in industry commentary as one of the first rare earth refineries in the Middle East.
Bob Wilt, CEO of Maaden, confirmed the company’s role as Saudi Arabia’s national mining champion in public statements accompanying the announcement. No construction timeline has been announced — the parties remain at the binding term sheet stage as of May 2026. The MP Materials company profile covers the US company’s broader Mountain Pass and downstream strategy.
Saudi Arabia Rare Earth and Vision 2030
Mining has been formally designated as the third economic pillar of Saudi Arabia’s Vision 2030 programme, alongside oil and petrochemicals. The kingdom’s estimated mineral wealth has risen approximately 90% since 2016 — from $1.3 trillion to $2.4–$2.5 trillion — as the national geological survey accelerates. The government’s target is to raise mining’s contribution to GDP from $17 billion in 2016 to $75 billion by 2030, with an ambition to rank among the top seven mineral processors globally.
The pace of exploration activity reflects this strategic shift. The number of active exploration licences grew from 224 in 2015 to 816 in 2023, and the annual exploration budget rose from $21 million in 2022 to $146 million in 2025 — a 600% increase in three years. Forty-eight minerals have been identified across the kingdom, with more than fifteen assessed as having significant commercial value.
Manara Minerals, a joint venture between the Public Investment Fund and Maaden established in 2023, functions as Saudi Arabia’s international mining investment vehicle, targeting copper, nickel, lithium, and rare earth assets globally. The Maaden–MP Materials–DoW refinery JV sits alongside Manara as part of a broader strategy to establish the kingdom as a midstream and downstream processor rather than merely a raw material exporter.
Strategic Significance — Heavy Rare Earths and Western Defence
The heavy rare earth content of Jabal Sayid is of specific interest to the US defence establishment. Dysprosium and terbium are critical inputs for the permanent magnets used in guidance systems, electric motors in combat aircraft, submarines, and precision munitions. Current US and allied dependency on Chinese-separated heavy rare earths represents a documented supply chain vulnerability — one that China has demonstrated willingness to exploit through its rare earth export controls, including restrictions introduced in 2023 and progressively tightened through 2025. For a full ranking of the minerals most exposed to Chinese supply risk, see rare earth defence applications ranked.
The Department of War’s inclusion in the Maaden JV — as both equity participant and financier — reflects the US government’s assessment that securing a non-Chinese heavy rare earth separation route is a defence procurement priority, not merely a commercial one. Saudi Arabia’s geographic position, sovereign stability, and depth of bilateral US trade and security relationships make the Jabal Sayid–Maaden partnership a structurally different proposition to comparable projects in frontier jurisdictions. The next public milestone to watch is the conversion of the November 2025 binding term sheet into a definitive investment agreement, which would trigger formal project engineering and permitting timelines.
For context on global rare earth supply distribution, see the top 10 rare earth producing countries.
This article is for informational purposes only and does not constitute investment advice. Project status and resource estimates are subject to revision.
Does Saudi Arabia have rare earth deposits?
Yes. The Jabal Sayid deposit in the Madinah Region contains an estimated 552,000 tonnes of heavy rare earths and 355,000 tonnes of light rare earths. Saudi government and CSIS assessments rank it the fourth most valuable rare earth reserve globally. Total Saudi reserves are estimated at approximately 3.2 million tonnes by the Saudi Geological Survey.
What rare earth elements does Saudi Arabia have?
Jabal Sayid contains heavy rare earths including dysprosium and terbium, and light rare earths including neodymium and praseodymium. Saudi Arabia rare earth reserves have not yet reached commercial production — the deposit is in the development and pre-feasibility stage as of 2026.
What is the Maaden MP Materials rare earth deal?
In November 2025, Saudi state miner Maaden (≥51%), MP Materials (NYSE: MP), and the US Department of War signed a binding term sheet to build a rare earth refining and separation facility in Saudi Arabia. The DoW provides non-recourse financing for the US portion. The facility is intended to separate light and heavy rare earth oxides for US and Saudi manufacturing and defence supply chains.
How does Saudi Arabia rare earth fit into Vision 2030?
Mining is designated as Saudi Arabia’s third economic pillar under Vision 2030. The kingdom’s mineral wealth is estimated at $2.4–$2.5 trillion, up approximately 90% since 2016. The government targets raising mining’s GDP contribution from $17 billion to $75 billion by 2030, with ambitions to rank among the top seven mineral processors globally.
Why are Saudi Arabia’s heavy rare earths strategically important?
Dysprosium and terbium from Jabal Sayid are of specific interest to the US Department of War because both elements are essential for permanent magnets used in defence systems — including combat aircraft motors, submarine propulsion, and precision guidance. The Maaden JV is designed in part to create a non-Chinese heavy rare earth separation route for US and allied defence procurement.
