Apple Signs $500 Million Deal with MP Materials
Apple has entered into a $500 million strategic deal with MP Materials, the owner of the Mountain Pass rare earth mine in California, to have a domestic source of rare earth magnets used in its products, such as iPhones, iPads, and MacBooks.
Under the agreement, Apple will provide an initial upfront prepayment of $200 million to help MP expand its Fort Worth, Texas magnet factory, which will start producing neodymium magnets specifically designed for Apple by 2027. The joint development partnership also involves co-developing a rare earth recycling facility at Mountain Pass to recycle post-consumer and industrial scrap, in line with Apple’s sustainability objectives of utilizing more recycled content.
The deal substantially lowers Apple’s reliance on Chinese rare earth supply in the face of escalating geopolitical tensions. It also enhances the domestic U.S. supply chain for vital materials while helping the Department of Defense establish American capacity for producing rare earth.
The news drove MP Materials’ shares up by more than 20%, a representation of faith in long-term revenue generated by one of the world’s most valuable tech firms. The magnets manufactured via this collaboration will be constructed from recycled rare earth elements, adding to Apple’s environmental pledges.
This agreement is a significant milestone in reshoring of key manufacturing to the U.S., creating jobs in Texas and California and providing supply security for Apple. This also indicates the increasing strategic value of rare earths in technology and defense sectors worldwide.
