Apple invests in rare earth recycling deal

Apple has committed $500 million to a US rare earths recycling initiative with MP Materials.

Apple invests in US rare earths recycling partnership

Apple has confirmed a $500 million investment in MP Materials, a US company specializing in rare earth mining. This partnership aims to establish a recycling line in Mountain Pass, California, focusing on reprocessing used electronics and scrap material for Apple products. The collaboration will also enhance MP Materials' Fort Worth factory to produce neodymium magnets specifically for Apple. The companies have worked together for nearly five years on recycling technology, although they have not specified when the new operations will begin. Production is expected to support hundreds of millions of Apple devices, with the first shipments slated to start in 2027. Tim Cook, Apple’s CEO, highlighted the importance of this deal in securing a domestic supply chain for rare earth materials.

Apple's move into rare earth recycling shows a significant shift towards sustainable manufacturing. As global demand for electronics continues to rise, ensuring a stable supply of essential materials is crucial. This partnership not only positions Apple as a leader in sustainability but also helps reduce dependency on international sources, particularly from China. With geopolitical tensions affecting trade, this initiative could shield both companies from potential supply chain disruptions while reinforcing American manufacturing capabilities.

Highlights

This initiative may shift the landscape of electronic manufacturing in the US.