Apple signs major US rare earth magnet deal with MP Materials
The multi-year deal includes a $200 million prepayment to MP Materials. Starting in 2027, MP Materials will supply Apple with magnets produced at its Fort Worth, Texas, facility. The magnets will be manufactured using materials recycled from MP's Mountain Pass mining site in California.
"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 Apple CEO Tim Cook.
The agreement aligns with the Trump administration's push to move electronics production and critical mineral sourcing away from China. It follows news last week that the U.S. Department of Defense struck a multibillion-dollar deal with MP Materials, effectively making the Pentagon its largest shareholder and financial backer.
MP shares surged 19 percent on the news, while Apple's stock rose slightly.
Rare earths, a group of 17 metals, are key to manufacturing magnets used in electronics, electric vehicles, and defense systems. China, the dominant global supplier, temporarily halted rare earth exports in March following a trade dispute with President Trump. The disruption highlighted the vulnerability of U.S. supply chains and increased urgency for domestic alternatives.
Apple said the MP deal is part of its $500 billion four-year investment in the U.S. economy. The company has faced pressure from Trump to localize iPhone production, though many experts say full-scale domestic assembly remains unlikely due to cost and supply chain complexity.
"This move makes complete sense," said Bob O'Donnell, president of TECHnalysis Research. "By focusing on a U.S.-based supplier, it does help position Apple more positively in Washington."
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