Apple Invests $500M in Pentagon-Backed MP Materials to Secure Domestic Rare Earth Supply

Apple’s $500M Investment in MP Materials Strengthens US Rare Earth Supply Chain

Apple has committed $500 million to MP Materials, the United States’ only rare earth elements producer. This deal supports Apple’s strategy to localize supply chains for its smartphones and electric vehicles. MP Materials operates the Mountain Pass mine in California and a new facility in Fort Worth, Texas, where Apple will co-develop neodymium magnet production lines tailored for its products. This partnership aligns with Apple’s plan to spend over $500 billion in US manufacturing over the next four years.

The collaboration will also launch a rare earth recycling initiative at Mountain Pass, converting recycled feedstock into materials for Apple products. Both companies will innovate new magnet materials and processing technologies to improve performance. Apple CEO Tim Cook highlighted the importance of rare earth materials for advanced technology, emphasizing the deal’s role in strengthening US supply chains.

Pentagon Backing and Market Impact of Apple-MP Materials Deal

MP Materials recently secured a multi-billion-dollar contract with the US Department of Defense. This deal aims to develop a domestic rare earth supply chain and reduce reliance on China. Following US tariffs on Chinese rare earths and China’s retaliatory export bans, global supply chains faced severe disruption. Industry giants like Ford and Suzuki halted production, while Elon Musk reported shortages affecting robotics manufacturing.

MP Materials expects to supply magnets to General Motors by year-end and begin shipping from its Texas plant in 2027, supporting hundreds of millions of Apple devices. MP’s stock jumped 22.5% following the announcement, reflecting strong market confidence. Apple’s share price rose modestly, signaling steady investor interest.

SuperMetalPrice Commentary:

Apple’s $500 million investment in MP Materials signals a pivotal shift in securing critical rare earth supplies within the US. This partnership enhances vertical integration and supply chain resilience during a time of geopolitical tension and market volatility. The collaboration will likely accelerate domestic manufacturing for high-tech and clean energy sectors, reducing dependence on China’s rare earth dominance. Industry watchers should monitor MP Materials’ scaling of magnet production and recycling innovations, which could reshape the global rare earth landscape over the next decade.