Apple’s New Supply Deal with MP Materials
Apple announced a $500 million partnership with MP Materials to make rare earth magnets in the United States at a Fort Worth, Texas site starting in 2027. The plan calls for magnets made entirely from recycled materials to serve hundreds of millions of Apple devices. Apple and MP Materials will work for several years to build and run a facility that turns scrap electronics into magnet feedstock.
Expansion of Recycling and Production Lines
The agreement will expand MP Materials’ Independence site in Fort Worth so it can produce neodymium magnets tailored to Apple products. The companies will also set up a large recycling line at MP Materials’ Mountain Pass, California location to process end‑of‑life electronics and industrial scrap into rare earth elements (businesswire.com). Apple has tested recycled rare earth performance with MP Materials for nearly five years to meet its strict standards (macrumors.com).
A Broader U.S. Investment Strategy
This deal follows Apple’s earlier commitment to invest over $500 billion across the U.S. in the next four years. It also lines up with recent U.S. government steps to boost domestic rare earth supplies as a matter of national security.
Just days before Apple’s announcement, the Department of Defense unveiled a $400 million investment in MP Materials to scale up magnet output and cut reliance on foreign sources.
Industry Context and U.S. Goals
MP Materials runs the only rare earth mine in the country at Mountain Pass, California. The firm began producing finished neodymium‑praseodymium metal in Texas this January and hit record output of more than 45,000 metric tons of rare earth oxides in 2024.
China still controls roughly 60 percent of global mining and up to 90 percent of processing capacity. The new U.S. lines aim to yield about 1,000 metric tons of finished magnets a year, enough for roughly half‑a‑million electric motors.
Personal Analysis of Apple’s Move
I see this deal as both practical and strategic. Apple reduces its risk by sourcing a critical component from home soil while advancing its own goals for environmental stewardship. It also shows that big tech will back long‑term investments to avoid supply shocks and geopolitical shocks. Yet the timeline extends to 2027, so Apple and MP Materials must maintain momentum to meet rising demand for electric vehicles and consumer gadgets that depend on rare earth magnets. I expect other firms will follow suit as they seek secure, local sources for vital materials.
Sources: apple.com
