Apple has signed a $500 million deal with Pentagon-backed MP Materials for a steady supply of rare earth magnets, marking one of the first tech companies to secure a U.S. supply agreement after China curbed exports earlier this year.
The deal, announced on Tuesday, guarantees Apple access to critical components produced in the US, reducing reliance on China. Under the agreement, Apple will prepay $200 million for a supply of magnets starting in 2027, with deliveries expected to begin at MP’s Fort Worth, Texas facility using recycled magnets from its Mountain Pass, California mining complex.
Analysts say the move boosts Apple’s image in Washington and positions the company more positively in relation to the US government. The deal reflects strong backing for Las Vegas-backed MP by one of the world’s most valuable companies, coming as the U.S. government agreed last week to become MP’s largest shareholder.
MP shares jumped 21% on Tuesday to a record high, while Apple’s stock gained under 1%. Rare earths are essential for making advanced technology, and this partnership will help strengthen the supply of vital materials in the US.
The deal is part of Apple’s $500 billion four-year investment commitment to the US. The company has faced threats from Trump over iPhones not made in the US but many analysts say making the iPhone in the US is not possible due to labor costs and existing smartphone supply chain.
Source: https://www.reuters.com/business/apple-invest-500-million-rare-earths-mine-operator-mp-materials-fox-business-2025-07-15