Saudi Arabia’s recent discovery of a substantial rare-earth mineral deposit at Jabal Sayid in the Madinah Region highlights the kingdom’s ambitions to develop a strategic rare-earth industry. Announced in September 2026, the deposit is estimated to contain approximately 114 million tonnes of ore rich in heavy rare earth elements such as dysprosium and terbium, alongside significant quantities of uranium, according to Energy Minister Prince Abdulaziz bin Salman.
Independent analysis citing government and Maaden data projects that Jabal Sayid could rank as the world’s fourth-largest rare-earth deposit, with an estimated 552,000 tonnes of heavy rare earths and 335,000 tonnes of light rare earths including neodymium and praseodymium. The discovery is part of broader efforts by Saudi Arabia to not only expand mining operations but also to build domestic processing and manufacturing capabilities for rare-earth materials, a critical component in high-tech industries ranging from electric vehicles to renewable energy.
The kingdom’s rare-earth resources have increased substantially over recent years, with the Saudi Geological Survey identifying two additional advanced-stage exploration sites totaling an estimated 644 million tonnes of mineral deposits. Overall, the combined value of Saudi Arabia’s rare-earth discoveries has reportedly reached $100 billion, reflecting a 90 percent increase since 2018.
Despite the promising geological prospects, experts caution that the size of the deposit alone does not guarantee commercial success. Kurt Radtke, president of Appia Rare Earths and Uranium Corp. and a former Maaden executive, emphasized that factors such as mineral grade, geology, continuity of the deposit, and the economic viability of extraction methods must be carefully evaluated through detailed testing and pilot projects before development can proceed.
Economic considerations were also stressed by Yaseen Ghulam, associate professor of economics and director of research at Al-Yamamah University in Riyadh. He noted that the overall viability of the rare-earth sector will depend on the efficiency of the entire supply chain—from mining and separation to refining and manufacturing—balanced against capital expenses, energy and water usage, logistics, and market price fluctuations. While Saudi Arabia benefits from relatively low energy and transportation costs, Ghulam urged caution, recommending that feasibility studies be grounded in long-term price forecasts and robust financial planning.
Technical challenges remain a significant hurdle, particularly in the rare-earth element separation process. Radtke identified the separation and refining of heavy rare earths at a commercial scale as a major operational obstacle. He highlighted the need for advanced processing technology, well-equipped laboratories, skilled metallurgists and engineers, stable reagent supply chains, and sustainable water and residue management practices.
Recognizing these challenges, Maaden has partnered with American rare-earth company MP Materials to develop a rare-earth refining and separation facility in Saudi Arabia. The joint venture, backed in part by the U.S. Department of War, aims to establish an integrated supply chain covering mining, refining, and magnet production. Maaden is expected to hold a majority stake of at least 51 percent, with MP Materials and the U.S. joint venture sharing the remaining 49 percent. Industry observers see this partnership as a key step toward technology transfer and the development of indigenous expertise.
Beyond refining, experts advocate for Saudi Arabia to gradually expand capabilities along the value chain, including production of oxides, metals, magnets, alloys, and components. Ghulam emphasized that creating competitive manufacturing linked to high-growth sectors such as electric vehicles, wind power, and electronics is essential to capturing greater economic value from the kingdom’s mineral wealth. However, he cautioned that local production should be prioritized only where Saudi Arabia holds a clear competitive advantage rather than relying solely on government subsidies.
As Saudi Arabia advances from exploration to commercial production, the critical test will be translating its considerable geological potential into a viable, sustainable rare-earth industry integrated with global supply chains and high-tech manufacturing.