Apple pours $500 million into US rare‑earth magnet supply

Apple and MP Materials on Tuesday unveiled a $500 million partnership aimed at bolstering the iPhone maker’s domestic supply chain for rare ‑earth magnets and setting up a new recycling facility. MP Materials’ shares responded positively to the development. They surged about 24% on the news, while Apple’s stock edged slightly higher. MP Materials’ Fort Worth to start shipments in 2027 Under the deal, Apple will purchase rare‑earth magnets produced at MP Materials’ Fort Worth, Texas, plant. The Texas facility, which processes minerals into powerful magnets used in everything from smartphones to electric vehicles, is slated to begin shipments in 2027. That timeline aligns with both companies’ long‑term strategy to localize critical technology inputs and reduce reliance on overseas suppliers. In a statement, Apple CEO Tim Cook said, “American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the US economy.” “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.” Cook. Beyond sourcing new magnets, Apple and MP Materials will collaborate on a rare‑earth recycling line at the Mountain Pass mine in California. That facility, currently America’s only operating rare‑earth mine, will process end‑of‑life electronics and other waste to recover and reuse these valuable metals. Through turning discarded devices into fresh material, the companies aim to support Apple’s long‑standing goal of eventually eliminating its dependence on traditional mining. MP Materials expects the recycling line to ramp up alongside the Fort Worth plant, ensuring a steady domestic flow of rare‑earth inputs for Apple’s products. “MP Materials and Apple will also innovate together to accelerate technological advancements in magnet production, as well as end-of-life recovery.” MP Materials. Over the past few years, the US government and private sector have made concerted efforts to reduce dependence on China , which historically has controlled the majority of the global rare‑earth elements market. Earlier this month, the Department of Defense became the largest shareholder in MP Materials by injecting $400 million in preferred stock, an investment designed to shore up America’s magnet supply. The deal makes perfect sense for Apple Apple’s move is part of a broader pledge to invest more than $500 billion in U.S. manufacturing over the next four years. Already this year, the company announced plans for a new AI‑server factory in Texas and other expansions designed to bring more production stateside. Market watchers note that MP Materials’ stock has nearly quadrupled since January, boosting its market value to nearly $10 billion. In the past month alone, the shares have almost doubled, reflecting growing investor confidence in the company’s role in reshaping the rare‑earth landscape. According to Apple, the agreement will create dozens of new manufacturing, research, and development positions across both facilities. That lift in employment underscores the pact’s economic impact beyond high‑tech supply chains. Bob O’Donnell, president of TECHnalysis Research , said the deal “makes complete sense” for Apple, given its heavy use of rare‑earth magnets in phones, tablets, and wearables “Sourcing domestically does help position Apple more positively in Washington, especially as companies align with US industrial policy.” O’Donnell. While Apple has faced political pressure to produce more iPhones in America, analysts caution that full-scale smartphone assembly in the US remains challenging due to higher labour costs and entrenched supply networks abroad. Still, this rare‑earth magnet deal marks a significant step in reshaping how advanced electronics are made and recycled on American soil. Apple and MP Materials are betting that by bringing both manufacturing and recycling of critical components closer to home , they can secure a more resilient, sustainable supply chain, one that’s ready for the next generation of technology. KEY Difference Wire : the secret tool crypto projects use to get guaranteed media coverage