MP Materials Corp. ( MP ) shares are trading higher premarket on Wednesday after the company disclosed an agreement with a Saudi Arabian Mining Company (Maaden) to explore opportunities for establishing a fully integrated, end-to-end rare earth supply chain.

This agreement unites the companies’ expertise in exploration and processing to facilitate and mitigate risks in the development of potential Rare Earth Element (REE) deposits throughout Saudi Arabia.

Maaden and MP Materials ( MP ) intend to investigate opportunities to jointly build a vertically integrated rare earth supply chain within Saudi Arabia.

This would encompass mining, separation, refining, and magnet production, with the aim of fostering industrial growth and generating value for downstream industries.

MP Materials ( MP ) CEO James Litinsky, said. “Today’s announcement is an important first step towards rebalancing the global supply chain in a moment of transformational growth fueled by emerging technologies—especially in robotics and physical AI—while deepening the strategic alliance between the United States and Saudi Arabia.”

Bob Wilt, CEO of Maaden, added, “Through a potential partnership with MP Materials ( MP ), and our deepening ties with the United States, we aim to create a global hub for a fully integrated rare earth value chain supporting advanced manufacturing in the Kingdom.”

Last week, MP Materials ( MP ) reported a first-quarter adjusted EPS loss of 12 cents, which was in line with analyst estimates, and sales reached $60.81 million, falling short of the estimated $63.69 million.

Investors can gain exposure to the stock via Sprott Critical Materials ETF ( SETM ) and VanEck Rare Earth and Strategic Metals ETF ( REMX ) .

Price Action: MP shares are up 3.08% at $21.42 at the last check on Wednesday.

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