Apple has announced a $500 million investment in MP Materials, a rare earths producer in the United States, to secure its supply chain away from Chinese dependence.
The tech giant is making this move as global trade tensions, particularly between Washington and Beijing, threaten mineral supplies vital to the production of iPhones, MacBooks, electric vehicles, and even defence systems.
This investment forms part of Apple’s $500 billion commitment to U.S. manufacturing over four years, covering chip production in Arizona, AI server manufacturing in Texas, and now rare earth magnet sourcing from MP Materials.
What’s driving this change in focus is that China’s control of over 85% of the world’s rare earth processing capacity has long been seen as a strategic vulnerability. That risk materialised in April when Beijing imposed new export restrictions on seven key rare earths, due to national security problems.
By May, global exports of rare earth magnets from China plummeted 74%, forcing tech and automotive sectors to scramble for alternative suppliers.
Apple’s agreement with MP Materials aims to change that narrative. As part of the deal, MP will supply Apple with U.S.-made rare earth magnets from its Texas facility. Commercial magnet production is expected to commence before the end of this year.
In a sustainability drive, Apple plans to source 100% recycled rare earth magnets from MP’s operations by 2027, using recycled materials processed at Mountain Pass, California.
Beyond Texas, both companies are planning a dedicated recycling plant near MP’s existing mine in Mountain Pass to recover rare earths from industrial scrap and discarded electronics. This aligns with Apple’s earlier move to incorporate 100% recycled rare earths in nearly all magnets within its devices since the iPhone 11’s release.
MP Materials is also benefiting from direct government support. The firm recently secured a multi-billion-dollar agreement with the U.S. Department of Defence, which now holds a $400 million equity stake in the company, making it MP’s largest shareholder.
Additionally, a $150 million loan will help expand MP’s capacity to separate heavy rare earths. A government-backed price floor of $110 per kilogram for essential minerals like neodymium and dysprosium has also been introduced to encourage domestic production.
“This agreement ensures Apple will have access to vital components without depending on unstable foreign sources,” an Apple spokesperson confirmed. The statement comes as rare earths, including neodymium, praseodymium, dysprosium, and terbium, are still critical for Apple’s devices and global technology infrastructure.
Market reactions were fast as MP Materials’ shares jumped 10% to $52.37 following Apple’s announcement.
By 2027, if Apple’s plans succeed, the rare earth magnets inside its products could be entirely American-made, powered by recycled materials, a major divergence from years of heavy dependence on Chinese processing plants.
