Apple Invests $500M in MP Materials, Boosting US Rare Earths Supply Chain

MP Materials shares surge 17% after Apple invests $500m in the US rare earths producer, bringing the year-to-date gain to over 200%. The move comes as the US prioritizes becoming less dependent on China for rare earth minerals. MP Materials will supply metals to Apple, and the two companies will build a rare earth recycling line and develop new magnet materials.

MP Materials shares (NYSE: MP) surged 17% after Apple (NASDAQ: AAPL) announced a $500 million investment in the U.S.-based rare earths producer, bringing the year-to-date gain to over 200%. The move comes as the U.S. continues to prioritize reducing dependence on China for rare earth minerals, a critical component in various technologies.

The deal, announced on July 2, 2025, will see MP Materials supply rare earth metals to Apple, with the two companies collaborating to build a rare earth recycling line and develop new magnet materials. This strategic partnership is part of Apple's broader commitment to contribute more than $500 billion to the U.S. economy over the next four years.

According to Apple CEO Tim Cook, "Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States." The collaboration includes plans to establish a recycling operation in Mountain Pass, California, which will process material from end-of-life electronics and post-industrial sources.

MP Materials, the only fully integrated rare earths producer operating domestically, is well-positioned to expand its manufacturing capabilities and create jobs in R&D and high-tech manufacturing. The two firms are expected to collaborate on training programs to build a skilled workforce to support the new operations.

This investment follows MP Materials' recent multibillion-dollar agreement with the U.S. Department of Defense, aimed at ramping up domestic output of rare earth magnets and reducing U.S. dependence on Chinese supply chains for critical materials used in defense, electric vehicles, and electronics.

The Apple deal comes as tensions with China continue to loom over global technology supply chains, especially when it comes to rare earths—materials that power everything from iPhones to electric vehicles. This bold step isn’t just about business—it’s about national security, tech independence, and a cleaner future.

References:
[1] https://m.economictimes.com/news/international/us/apple-pours-500-million-into-mp-materials-in-rare-earths-power-move-pentagon-backed-deal-sends-mp-stock-soaring-11-to-53-85/articleshow/122511570.cms
[2] https://ih.advfn.com/market-news/article/12683/mp-materials-shares-jump-on-report-of-500m-apple-investment