Apple announced a $500 million multi-year investment in MP Materials, the only fully integrated rare-earth mine operator in the U.S. The deal involves sourcing neodymium magnets from MP’s upgraded Fort Worth, Texas facility and co-developing a recycling plant at Mountain Pass, California, to reclaim magnets from used electronics—marking a strategic effort to secure supply chain independence and boost domestic manufacturing
🔍 4 Strategic Highlights
1️⃣ Reducing China dependency
By securing domestic rare-earth magnet production, Apple significantly lessens its reliance on China, which currently controls ~70% of processing capacity—aligning with broader U.S. moves to secure critical mineral supply chains
2️⃣ Boosting American manufacturing
The initiative includes building new magnet production lines in Texas and a recycling line in California. This will create dozens of advanced manufacturing and R&D jobs, supporting Apple’s larger commitment—over $500 billion in U.S. investment over four years
3️⃣ MP Materials stock surge
MP’s stock spiked between 17% and 25% following the announcement, reflecting investor optimism over Apple’s entry and the U.S. Defense Department’s recent $400 million investment in MP
4️⃣ Sustainability and circular economy
Apple and MP will co-develop recycling infrastructure to process magnets from electronics, furthering Apple’s environmental goals—nearly all current Apple magnets use 100% recycled rare-earth elements
🔭 What to Watch Next
- Production timeline: Magnet shipments from Fort Worth are expected to begin by 2027, supported by a $200 million prepayment from Apple
- Recycling plant buildout: See how quickly the Mountain Pass facility becomes operational.
- Policy alignment: This move aligns with U.S. Defense and industrial initiatives to reduce reliance on China.
- Industry ripple effect: Other tech giants may follow Apple’s lead in securing domestic critical mineral supply chains.
✅ Bottom Line
Apple’s $500 million deal with MP Materials is a significant leap toward securing critical rare-earth magnets through U.S.-based production and recycling. With domestic manufacturing, supply chain resilience, and environmental sustainability as cornerstones, this initiative positions Apple and MP as leaders in reshaping the rare-earth materials landscape.
