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Apple Invests $500 Million in Rare-Earth Leader MP Materials to Boost U.S. Supply Chain

Prime Highlights

  • Apple invests $500 million in MP Materials to build U.S.-based rare-earth magnet production.
  • The transaction includes a Texas factory and California recycling plant with deliveries beginning in 2027.

Key Fact

  • The investment by Apple encourages local manufacturing of neodymium magnets needed for iPhones and other products.
  • MP Materials is also backed by a $400 million Pentagon contract offering long-term supply assurance.

Key Background

Apple has made a substantial $500 million investment in MP Materials, America’s top rare-earth mining and processing business, to boost domestic production of such vital components as neodymium magnets. The acquisition is consistent with Apple’s dedication to a balanced US supply chain and otherwise diminishes dependence on overseas sources—most notably, China, which now dominates the rare-earth magnet market.

The alliance will have MP Materials expand the Fort Worth, Texas factory to make magnets starting from 2027. The magnets are essential for iPhones, iPads, and MacBooks to function—facilitating haptics, speakers, and MagSafe charging. Further, a high-tech recycling center will be opened at MP’s Mountain Pass facility in California to recover rare-earth elements from end-of-life products. The initiative is a step towards Apple’s sustainability objective of utilizing 100% recycled rare-earths in products.

Apple’s CEO spoke about the strategic necessity for investment in capabilities in the region to increase technological independence and sustainability. The tech giant is expanding its overall investment base in the United States, with more than $500 billion to be invested over the next few years.

MP Materials, already funded with a $400 million public investment package from the U.S. Department of Defense, will gain from this new public-private partnership. The Pentagon’s support is in the form of purchase guarantees and price floors on rare earths, making the government MP’s biggest financial supporter to date. On top of Apple’s investment, this public-private partnership accelerates the build-out of a rare-earth ecosystem in the United States.

Although MP Materials by itself will not meet all the country’s needs, Apple’s investment is a strong statement—driving national security, clean energy, and tech manufacturing by homegrown sources. It also puts Apple in a great position to be a stakeholder in defining the new world rare-earth supply chain.