On Tuesday, Apple has reached a $500 million deal with the largest rare earth producer in the United States, MP Materials Corp. Apple will purchase rare earth minerals from the company. Last week, in an effort to reduce reliance on Chinese imports of rare earths, the Pentagon invested in MP Materials, becoming its largest shareholder.
In a statement released on Tuesday, Apple stated that under this long-term agreement, the company pledges to buy American-made rare earth magnets produced at MP Materials’ independent plant in Fort Worth, Texas. The two companies will also collaborate to establish an advanced rare earth recycling production line in Mountain Pass, California, and develop innovative magnet materials and processing techniques to enhance magnet performance.
“This commitment is part of Apple’s pledge to invest over $50 billion in the United States in the next four years, continuing the company’s long-standing investment in American innovation, advanced manufacturing, and next-generation recycling technologies,” Apple said.
Following the announcement, MP Materials’ stock price rose by 23%, while Apple’s stock price saw a slight increase.
Rare earth magnets are crucial components in consumer electronics, automobiles, renewable energy systems, and military products. In the midst of the US-China trade war, where China weaponized rare earths by restricting their exports, the United States and other Western countries have been prompted to hasten their efforts to reduce dependence on Chinese rare earths.
Apple’s CEO Tim Cook stated in the declaration, “American innovation drives everything we do at Apple, and we are proud to deepen our investment in the US economy.”
“The rare earth materials are vital for manufacturing advanced technologies, and this collaboration will help strengthen the supply of these essential materials in the United States. We are excited about the future of American manufacturing and will continue to invest in the ingenuity, creativity, and innovation of the American people,” Cook added.
Apple’s statement further mentioned that Apple and MP Materials will equip a series of neodymium magnet production lines designed specifically for Apple products at their advanced plant in Texas. The new equipment and technological capabilities will significantly increase MP Materials’ overall production. Once the factory is completed, these American-made magnets will be sold domestically and globally to meet the growing demand for neodymium magnets worldwide. The increased production will create dozens of new job opportunities in advanced manufacturing and research and development. Both companies will provide extensive training to cultivate their workforce, thus building a new pool of talent and professionals for the American magnet manufacturing sector.
The factory will enable MP Materials to recycle rare earth materials and use them in Apple products. James Litinsky, CEO of MP Materials, stated in another statement on Tuesday, “This collaboration deepens our vertical integration, enhances the resiliency of the supply chain, and strengthens America’s industrial capacity at a critical moment.”
For years, the United States has been striving to reduce its reliance on Chinese rare earths. MP Materials operates the only rare earth mine in the United States, located about 60 miles from Las Vegas.
Earlier this month, the US Department of Defense became the largest shareholder of this rare earth mining company by purchasing $400 million worth of preferred stock to improve the domestic supply of rare earth magnets in the United States.
MP Materials announced that the Fort Worth, Texas plant is expected to begin shipping magnets in 2027 and will gradually increase production to support hundreds of millions of Apple devices.
Apple stated that over the past five years, they have been experimenting with advanced recycling technologies with MP Materials. These technologies can process recycled rare earth magnets into materials that meet Apple’s strict performance and design standards. The two companies will continue to innovate together to improve magnet production and recycling.
“The collaboration with MP Materials will help ensure a domestic supply of this critical material, enhance the American rare earth industry’s access to more raw materials, and drive environmental progress through innovative recycling methods,” Apple’s statement concluded.