Apple, MP Materials in $500M Rare Earth Deal

Apple has entered into a $500 million, multi-year purchase agreement with MP Materials, the only fully integrated rare earth producer in the U.S., to supply American-made magnets for products such as iPhones and AirPods. The deal includes building a magnet manufacturing plant in Fort Worth, Texas, and developing a rare earth recycling facility in Mountain Pass, California. This initiative aims to decrease Apple's dependence on China for critical minerals, in direct response to recent geopolitical tensions and Chinese export controls. The U.S. government has intensified efforts to secure domestic strategic mineral supply chains, exemplified by the Department of Defense's recent acquisition of a major stake in MP Materials. The purchase agreement is part of Apple's broader $500 billion U.S. investment plan over four years to bolster American manufacturing and innovation. Shares of MP Materials rose sharply after the announcement, highlighting the deal’s strategic and economic importance.