US and Pentagon to Support Rare Earths Industry with Apple Partnership

Apple has joined forces with MP Materials to reduce its dependence on China for rare earths, essential for electronic products. The partnership, expected to start in 2027, comes as the US prioritizes reducing its reliance on China. MP Materials, the only US-based rare earth mine operator, has also won a multi-billion dollar contract with the Pentagon and received investment support to create a second mine. The US Commerce Secretary has linked the resumption of Nvidia H20 chip exports to China to US negotiations on rare earths.

Apple Inc. and MP Materials Corp. have announced a strategic partnership aimed at reducing the tech giant's reliance on China for rare earths, essential components in electronic products. The agreement, valued at $500 million, involves the development of a rare earth magnets recycling facility and the purchase of magnets from MP Materials' Fort Worth, Texas, facility [1].

The collaboration is part of Apple's broader $500 billion pledge to onshore production and strengthen its U.S. supply chain. MP Materials, the sole operator of a rare earth mine in the U.S., will supply Apple with rare earth magnets, while both companies will work together to establish a recycling line in Mountain Pass, California. The recycling facility is expected to start operations in 2027 [1].

The deal comes as the U.S. prioritizes reducing its dependence on China, which dominates the global rare earth elements supply chain. The U.S. Department of Defense has also invested in MP Materials, becoming its largest shareholder with a $400 million preferred stock purchase, a $150 million loan, and a 10-year price guarantee for rare earth compounds [2]. The Pentagon's investment is part of a broader strategy to ensure the U.S. has a reliable domestic supply of rare earth magnets, crucial for defense systems and emerging technologies [3].

Apple's CEO, Tim Cook, stated, "American innovation drives everything we do at Apple, and we're proud to deepen our investment in the U.S. economy. 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" [1].

The partnership is expected to create dozens of new manufacturing and research and development roles, further bolstering the U.S. economy. MP Materials plans to begin shipping magnets in 2027, with the 10X Facility, a second domestic magnet production facility, expected to begin commissioning in 2028 [2].

The U.S. Commerce Secretary has linked the resumption of Nvidia H20 chip exports to China to negotiations on rare earths, highlighting the geopolitical significance of securing a reliable domestic supply chain [3].

References:
[1] https://www.cnbc.com/2025/07/15/apple-mp-materials-magnets-rare-earths.html
[2] https://newsable.asianetnews.com/markets/apple-to-reportedly-invest-500m-into-us-rare-earths-supplier-mp-materials-articleshow-db9u274
[3] https://www.ainvest.com/news/securing-future-pentagon-backing-positions-mp-materials-heart-rare-earth-strategy-2507/