Apple invests $500m in rare earths producer MP Materials
(Reuters) -- Apple said on Tuesday it would invest $500 million into rare earths mine operator MP Materials MP.N, as the iPhone maker seeks to localize its mineral supply chain.
The investment is part of a broader push to bring the production of its coveted iPhones to the United States and boost U.S. manufacturing amid a push from the Trump administration to cut reliance on China.
Rare earths are a group of 17 metals used to make magnets that turn power into motion. China halted rare earths exports in March following a trade spat with U.S. President Donald Trump that showed some signs of easing late last month, even as broader tensions underscored demand for non-Chinese supply.
Shares of Las Vegas-based MP Materials jumped 10% to $52.37 in premarket trading.
MP last week agreed to a multibillion-dollar deal with the U.S. Department of Defense to boost output of rare earth magnets and help loosen China's market control.
Apple said the MP investment is part of its $500 billion commitment to the United States.
The agreement includes plans for Apple to purchase U.S.-made rare earth magnets from MP Materials' Texas facility. It would be the first supply deal for MP's magnets since the financial backstop agreement with Washington.
MP already produces mined and processed rare earths and has said it expects to start commercial magnet production in Texas facility by the end of this year.
The two companies would build another factory in Texas to produce magnets and a new recycling facility in Mountain Pass, California, near the company's existing mine.
Last week's deal with the U.S. government includes a price floor for rare earths, designed to spur investment in domestic mines and processing plants, which has been lagging partly due to low prices set in China.
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