Apple Inc. (NASDAQ:AAPL) announced a $500 million commitment to MP Materials (NYSE:MP) to expand the domestic supply of rare earth magnets used in its products, marking a significant step in the U.S. push to reduce dependence on China for critical materials. The multiyear deal will support new manufacturing and recycling facilities in Texas and California and aligns with broader national security priorities championed by the Trump administration.
"American innovation drives everything we do at Apple, and we're proud to deepen our investment in the U.S. economy," said Apple CEO Tim Cook. "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."
The partnership with MP Materials, the operator of the only integrated rare earth mine and processing facility in the U.S., includes construction of a neodymium magnet manufacturing plant in Fort Worth, Texas, and a new recycling line in Mountain Pass, California. The magnets produced will be used across Apple devices, while the California facility will reprocess rare earths from post-industrial scrap and used electronics.
Shares of MP Materials surged 12.3% to $54.50 in premarket trading Tuesday following reports of the agreement. Apple's investment is part of a broader $500 billion commitment to U.S. operations over the next four years, with this deal specifically aimed at scaling rare earth magnet production and advancing closed-loop recycling technologies.
The announcement follows a separate multibillion-dollar agreement between MP Materials and the U.S. Department of Defense to ensure pricing stability for key rare earths. The DoD established a price floor nearly double current market rates to incentivize domestic production and reduce reliance on China, which currently dominates global rare earth processing, controlling roughly 90% of global refining capacity and 60% of raw supply.
A senior White House official praised Apple's deal, calling it "good for the country, good for American workers." The arrangement is viewed as a strategic victory for the Trump administration's national security agenda focused on reshoring supply chains.
Apple and MP have been collaborating on rare earth recycling for nearly five years. The companies pioneered use of recycled rare earth elements in Apple's Taptic Engine in 2019, and now report that nearly all Apple magnets use 100% recycled material. The new initiative will help scale that model nationally.
MP Materials expects to begin commercial production at the Texas facility by the end of this year, with the expanded capacity projected to create dozens of jobs in advanced manufacturing and R&D. The companies also plan to offer workforce training programs to build a new generation of domestic talent in magnet fabrication.
