Saudi Arabia’s Bold Awakening: Rare Earth Elements in Saudi Arabia and the Race to Refine at Home

Saudi Arabia is building a new plan for rare earth elements in Saudi Arabia. The goal is not only to find minerals. It is to process them at home and support local manufacturing. This shift fits Vision 2030, which names mining as a key pillar for diversifying the economy beyond oil.

Several sources highlight why refining matters. CNN reports that China controls over 90% of the world’s output of refined rare earths and over 60% of rare earth mining production, citing the International Energy Agency. Arab News also says processing capacity is highly concentrated, with China refining about 90 percent of rare earths. For Saudi Arabia and its partners, that concentration creates supply risk and stronger demand for new refining hubs.

One major reason Saudi Arabia is being watched is the scale of specific deposits. CSIS says the Jabal Sayid deposit, about 350 kilometers northeast of Jeddah, is believed to hold the fourth most valuable reserves of rare earth elements globally, based on estimates received from Saudi Arabia’s Ministry of Industry and Mineral Resources. CSIS reports an estimated 552,000 tons of heavy rare earths, including dysprosium and terbium, plus an additional 355,000 tons of light rare earths such as neodymium and praseodymium.

From Untapped Reserves to Domestic Control Points

Saudi Arabia is also raising spending and speeding up access to land for exploration. CNN says Saudi Arabia’s budget for exploratory mining increased 595% between 2021 and 2025, based on S&P Global. The same report says licensing new mining sites to domestic and international companies has gathered pace. This is important because, as CNN also notes, mining and processing can take years, and a processing plant can take three to five years to build.

Partnerships are a central tool. AGSI says Saudi Arabia signed nine mineral deals valued at $9.3 billion in late 2024 with companies including India’s Vedanta Resources and China’s Zijin Mining Group. CNN adds that the kingdom says it has $2.5 trillion in mineral reserves, including gold, zinc, copper, lithium, and rare earth deposits such as dysprosium, terbium, neodymium, and praseodymium.

The biggest signal is the move into domestic processing. Reuters reports that MP Materials will build a rare earths refinery in Saudi Arabia with the U.S. and Maaden. Reuters says the facility will refine rare earths from Saudi Arabia and elsewhere into oxides of heavy and light rare earths. CSIS adds that the U.S. Department of Defense will finance a 49 percent equity stake in a new rare earths refinery in Saudi Arabia, tied to a Strategic Framework for Cooperation on supply chains for uranium, metals, permanent magnets, and critical minerals.