Apple Secures $500M Rare Earth Magnet Deal with MP to Diversify US Supply Chain

Apple has signed a $500 million deal with MP Materials to secure a rare earth magnet supply in the US. The agreement aims to expand Apple's domestic supply chain and reduce its reliance on foreign suppliers. The deal is a significant step in Apple's efforts to diversify its supply chain and secure critical materials for its products.

Apple Inc. has signed a significant $500 million agreement with MP Materials, a leading U.S. rare earth producer, to secure a long-term supply of rare earth magnets. This deal, announced on July 15, 2025, represents a strategic move by Apple to expand its domestic supply chain and reduce reliance on foreign suppliers.

Under the terms of the agreement, Apple will prepay $200 million to MP Materials, with full-scale magnet production expected to commence in 2027. The rare earth magnets, crucial components in many consumer electronics including the iPhone, will be manufactured at MP’s facility in Fort Worth, Texas. The raw materials will be sourced in part from recycled materials at MP’s Mountain Pass, California site [2].

The deal is part of Apple’s broader initiative to localize more of its manufacturing footprint, particularly amid ongoing U.S.-China trade tensions. Tim Cook, Apple’s CEO, emphasized the importance of the deal in securing critical resources domestically: “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” [2].

This agreement aligns with Apple’s $500 billion, four-year investment pledge in the U.S. economy. The move is expected to create dozens of new jobs in advanced manufacturing and R&D, while also providing extensive training to develop the workforce, building an entirely new pool of U.S. talent and expertise in magnet manufacturing [1].

Additionally, the deal includes plans to establish a cutting-edge rare earth recycling line in Mountain Pass, California. This facility will enable MP Materials to reprocess recycled rare earth feedstock, including material from used electronics and post-industrial scrap, for use in Apple products. Apple pioneered the use of recycled rare earth elements in consumer electronics, first introducing them in the Taptic Engine of iPhone 11 in 2019. Today, nearly all magnets across Apple devices are made with 100 percent recycled rare earth elements [1].

The geopolitical backdrop adds urgency to such deals. China, which currently dominates the global rare earth supply chain, halted exports of the materials in March during a trade dispute with former President Donald Trump. Although some diplomatic progress has since been made, the incident intensified calls for alternative supply sources [2].

The rare earth sector in the U.S. has historically struggled with volatile prices and limited processing capacity. The Pentagon’s recent investment in MP Materials includes a pricing floor mechanism to encourage domestic development, countering price suppression from Chinese producers and addressing long-standing concerns over supply chain security [2].

This deal is a significant step in Apple’s efforts to diversify its supply chain and secure critical materials for its products, positioning the company more positively in Washington and strengthening the U.S. rare earth industry’s capabilities [1].

References:
[1] https://www.apple.com/newsroom/2025/07/apple-expands-us-supply-chain-with-500-million-usd-commitment/
[2] https://www.pymnts.com/cpi-posts/apple-strikes-500m-deal-with-mp-materials-to-boost-us-rare-earth-supply-chain/