Apple Strikes $500M Deal with MP Materials to Supercharge U.S. Manufacturing and Innovation

Apple Inc. has forged a groundbreaking $500 million long-term agreement with MP Materials, the sole rare earth producer in the United States, to bolster the domestic supply chain for crucial materials. Under the terms of this deal, Apple will purchase rare earth magnets manufactured from MP's Fort Worth, Texas facility. This collaboration is envisioned to significantly enhance the sourcing of essential components within the United States.

As part of this agreement, MP Materials will supply Apple with rare earth magnets from its flagship Fort Worth plant. Additionally, both companies plan to establish an advanced rare earth recycling line in Mountain Pass, California. They aim to jointly develop innovative magnet materials and refine processing techniques to boost the performance of these magnets. This venture is anticipated to stimulate job growth in the fields of advanced manufacturing and research and development.

Apple CEO Tim Cook highlighted the importance of nurturing innovation in the United States, stating, "Driving American innovation is a core motivator for Apple’s progress. We take pride in strengthening our support for the U.S. economy. Rare earth materials are vital for the production of high-tech products, and this partnership will enhance America's capacity to supply these critical materials. We remain optimistic about the future of American manufacturing and continue to support the creativity and technological advancements of the American people."

The partnership follows a broader announcement by Apple to invest $50 billion in the United States over the next four years. This encompasses various pivotal areas such as local research and development, chip production in Arizona, AI server manufacturing in Houston, film production, and establishing educational institutions in Michigan.