Apple has signed a $500 million deal with MP Materials to secure a domestic supply of rare earth magnets, aiming to reduce dependence on China after recent export restrictions heightened supply chain risks.
The deal guarantees Apple access to magnets made without Chinese materials, offering long-term stability in a market dominated by China. MP Materials, which operates the only rare earths mine in the United States, will manufacture the magnets using recycled materials at its facility in Fort Worth, Texas.
Inputs will come from recycled rare earths processed at the company’s Mountain Pass site in California. Under the agreement, Apple will prepay $200 million to MP for future deliveries, which are set to begin in 2027. The companies have not disclosed the duration of the deal or the quantity of magnets to be supplied.
MP’s momentum builds after defense deal
The partnership marks a major milestone for MP Materials. Just a week prior, the Las Vegas-based company reached a multibillion-dollar agreement with the U.S. Department of Defense. That deal will make the Pentagon its largest shareholder and includes a price floor for rare earths, a move intended to bolster domestic mining and processing. MP’s stock price has nearly doubled since that announcement.
🚨 BIG WIN FOR AMERICAN RARE EARTHS 🚨
Apple & MP Materials just inked a $500 million deal to secure U.S.-made rare earth magnets.
A Texas factory. American workers. No China.
A thread on the end of Chinese dominance 🧵 pic.twitter.com/roRvSDy5bo
— Rod D. Martin (@RodDMartin) July 15, 2025
The Apple agreement further boosted the company’s shares, which jumped 20% after the news. The turnaround follows a difficult year for MP, during which it considered merging with an Australian competitor amid plunging profits. CEO Jim Litinsky previously described the pricing climate as “very frustrating.”
Rare earths are vital to modern technology
Rare earth elements, a group of 17 metals, are essential for producing magnets used in smartphones, electric vehicles, military systems, and other advanced technologies.
China controls the bulk of the global supply and imposed export restrictions in April in response to U.S. tariffs introduced by President Donald Trump.
Although a June deal eased some rare earth tensions between the two countries, broader trade disputes have sustained the push for alternative sources.
Apple’s investment fits broader U.S. strategy
Apple, one of the world’s most valuable companies, said the magnet supply deal supports its broader $500 billion, four-year U.S. investment plan. While the company has faced political pressure to manufacture iPhones domestically, many analysts believe U.S. production remains unlikely due to labor costs and the complexity of the global supply chain.
Apple Inc. has struck a $500 million deal to buy rare-earth minerals from MP Materials Corp., the US producer that just last week secured backing from the Pentagon.
The two companies will also work together to “establish a cutting-edge rare earth recycling line” in Mountain… pic.twitter.com/fjfa0gkm3j
— Melissa Hallman (@dotconnectinga) July 15, 2025
Gracelin Baskaran, director of the critical minerals security program at the Center for Strategic and International Studies, said the move reflects a broader trend among corporations. “We’re in an era where executives are willing to pay a significant premium for a reliable supply chain,” she said.
MP expands presence across industries
Apple did not specify which devices will use the magnets. However, MP said the agreement covers magnets for hundreds of millions of units, suggesting a wide role across Apple’s product range.
MP also holds supply agreements with General Motors and Germany’s Vacuumschmelze, reinforcing its growing influence in the rare earths market. The company expects to begin commercial magnet production at its Texas facility by the end of the year.
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