Apple Inc. has finalized a $500 million agreement to purchase rare-earth minerals from MP Materials Corp., a U.S.-based producer recently backed by the Pentagon. The deal strengthens efforts to secure critical supply chains and reduce reliance on China for essential technology components.
As part of the partnership, Apple and MP will build a Texas-based manufacturing facility focused on producing neodymium magnets, vital components for iPhones and other Apple devices. Magnet shipments from the Fort Worth facility are expected to begin in 2027, with production scaled to support hundreds of millions of Apple units.
“Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States,” said Tim Cook, Apple CEO.
The collaboration also includes the development of a rare earth recycling line at Mountain Pass, California, where MP Materials operates the only U.S. rare-earth mine. The facility will process recycled feedstock and develop next-gen magnet materials to enhance performance.
MP Materials’ shares jumped 18% in intraday trading following the announcement, their highest level since April 2022, while Apple stock also saw a modest rise.
“This collaboration deepens our vertical integration, strengthens supply chain resilience, and reinforces America’s industrial capacity at a pivotal moment,” added James Litinsky, CEO of MP Materials.
The deal marks a significant milestone in the U.S.'s bid to diversify rare-earth sourcing, especially as global supply chains reel from previous Chinese export curbs. In 2019, China restricted exports following U.S. tariffs, highlighting vulnerabilities in tech and defense manufacturing. Recently, both nations have signaled easing tensions, but concerns remain.
Backed by a $400 million investment from the U.S. Department of Defense and $1 billion in private financing from JPMorgan and Goldman Sachs, MP is set to play a major role in reshaping the global rare-earth landscape.
