Agreement includes plans for Apple to purchase American-made rare earth magnets from MP Materials’ Texas facility - Fox Business

Agreement includes plans for Apple to purchase American-made rare earth magnets from MP Materials’ Texas facility - Fox Business

Apple Inc. is set to announce a significant $500 million investment in MP Materials, the only operating rare earth mine in the United States. This move follows the company's commitment to purchase American-made rare earth magnets from MP Materials' Texas facility, marking a strategic step in bolstering the U.S. supply chain for critical minerals [1].

The agreement includes plans for Apple to build a new recycling facility in Mountain Pass, California, to reprocess materials from used electronics. Additionally, Apple and MP Materials are expected to establish another factory in Fort Worth, Texas, to produce magnets for Apple products and other electronics [1].

This investment aligns with the Trump administration's national security priorities, which include increasing domestic production of rare earth materials. The White House has praised Apple's involvement, highlighting the benefits for American workers and the country's economic security [1].

The Department of Defense has also invested $400 million in MP Materials, further underscoring the government's commitment to reducing reliance on foreign sources for critical minerals. The DoD's investment will support the construction of a new rare earth magnet manufacturing facility, known as the "10X Facility," which is expected to begin commissioning in 2028 [2].

This partnership aims to accelerate domestic production, strengthen supply chain security, and support dual-use technologies spanning both defense and commercial markets. The deal includes a 10-year off-take agreement with a guaranteed price floor of $110 per kilogram for neodymium-praseodymium materials, ensuring stable revenue for MP Materials [2].

The investment from Apple and the DoD positions MP Materials as a key player in the U.S. rare earth market, further reducing dependence on China, which currently dominates the global supply of critical minerals. This strategic move is expected to have significant implications for the rare earth industry and the broader tech and defense sectors [3].

References:
[1] https://www.foxbusiness.com/politics/apple-backs-trump-rare-earth-minerals-push-invests-500m-us-mine
[2] https://www.investing.com/news/assorted/mp-materials-partners-with-defense-department-on-rare-earth-magnet-facility-432SI-4129619
[3] https://www.mining.com/mp-materials-lands-multi-billion-pentagon-deal/