Apple and MP Materials ink $500mln deal to build US rare earth magnet supply chain, aiming to produce hundreds of millions of devices from recycled materials.

Apple and MP Materials have signed a $500 million supply agreement to manufacture rare earth magnets in the US from 100% recycled materials. The deal will support hundreds of millions of Apple devices, including iPhones, iPads, and MacBooks. The partnership aims to strengthen the US supply chain for rare earth materials, which are essential for advanced technology. MP Materials' share price soared 20% following the news, pushing its market cap to near $10 billion. The deal is seen as a validation of MP's strategy to build a fully domestic rare earth magnet supply chain and reduce reliance on China.

Apple Inc. (NASDAQ: AAPL) and MP Materials Corp. (NYSE: MP) have signed a $500 million supply agreement to manufacture rare earth magnets in the United States from 100% recycled materials. The deal, announced on July 15, 2025, aims to support the production of hundreds of millions of Apple devices, including iPhones, iPads, and MacBooks. This partnership is a significant step towards strengthening the U.S. supply chain for rare earth materials, which are essential for advanced technology.

Under the agreement, MP Materials will supply Apple with rare earth magnets produced at its Independence facility in Fort Worth, Texas. The two companies will also collaborate to establish a cutting-edge rare earth recycling line at Mountain Pass, California. This recycling line will process old magnets, manufacturing scrap, and electronic waste, reducing waste and conserving resources [1].

The deal underscores Apple's commitment to sustainability and its goal of transitioning entirely to recycled and renewable materials. In 2024, over 80% of the rare earth elements used in Apple products came from certified recycled sources, up from 75% in 2023 [2]. By the end of 2025, Apple plans to use 100% recycled rare earth magnets across all products, excluding items made for replacement or repair.

The agreement has had a significant impact on MP Materials' stock price. Following the announcement, MP shares rose by 20%, pushing its market cap to near $10 billion [3]. The deal is seen as a validation of MP's strategy to build a fully domestic rare earth magnet supply chain and reduce reliance on China, which currently dominates the global rare earth elements supply chain.

This partnership is part of Apple's broader plan to invest more than $500 billion in the U.S. over the next four years. The company aims to strengthen its manufacturing capabilities and supply chain resilience, contributing to the U.S. economy and supporting American innovation [1].

References:
[1] https://www.cnbc.com/2025/07/15/apple-mp-materials-magnets-rare-earths.html
[2] https://carboncredits.com/apple-to-invest-500-million-in-mp-materials-for-u-s-made-recycled-rare-earth-magnets/
[3] https://www.apple.com/newsroom/2025/07/apple-expands-us-supply-chain-with-500-million-usd-commitment/