Apple has signed a $500 million agreement with MP Materials to secure a domestic supply of rare earth magnets, a strategic move aimed at reducing reliance on China after recent export restrictions raised concerns about supply chain stability.
The deal ensures Apple access to magnets produced without Chinese materials, helping the tech giant maintain consistency in a market where China dominates. MP Materials, which operates the only rare earths mine in the United States, will manufacture the magnets at its facility in Fort Worth, Texas, using recycled inputs processed at its Mountain Pass site in California.
Apple secure Rare earth magnate deal with MP Materials
Under the agreement, Apple will provide a $200 million prepayment to MP for future deliveries. Magnet shipments are scheduled to begin in 2027. The companies have not disclosed the contract’s duration or the total volume of magnets to be supplied.
This new partnership marks a significant milestone for MP Materials. Just a week before the Apple announcement, the Las Vegas-based firm finalized a multibillion-dollar agreement with the U.S. Department of Defense, which will make the Pentagon MP’s largest shareholder. That deal also includes a price floor for rare earth elements, a measure designed to support the domestic supply chain. Since the announcement, MP’s stock has nearly doubled.
News of the Apple partnership delivered another boost, sending MP’s shares up 20%. The announcement follows a difficult year for the company, during which it explored a potential merger with an Australian competitor amid falling profits. CEO Jim Litinsky had previously called the rare earths pricing environment “very frustrating.”
Rare earth elements remain essential to modern tech
Rare earths, a group of 17 critical metals, are essential components in magnets used across a range of advanced technologies, including smartphones, electric vehicles, and military equipment.
China currently controls the majority of global rare earth production and imposed export restrictions in April in response to U.S. tariffs enacted under former President Donald Trump. While a June agreement between the two nations eased some tensions, broader trade friction has kept the pressure on companies to diversify their supply sources.
Apple said the magnet supply agreement supports its larger $500 billion U.S. investment plan, which spans four years. Although the company has faced political scrutiny over the outsourcing of iPhone manufacturing, industry experts widely believe large-scale U.S. production remains unlikely due to high labor costs and complex supply logistics.
Gracelin Baskaran, director of the critical minerals security program at the Center for Strategic and International Studies, said Apple’s move reflects a growing corporate trend. “We’re in an era where executives are willing to pay a significant premium for a reliable supply chain,” she noted.
While Apple has not confirmed which products will incorporate the magnets, MP stated that the agreement covers components for hundreds of millions of units, suggesting their use across much of Apple’s lineup.
MP already supplies rare earth materials to other major companies, including General Motors and Germany’s Vacuumschmelze, further expanding its presence in the rare earths market. The company anticipates beginning commercial magnet production at its Fort Worth facility by the end of the year.