Apple signs $500 million deal with MP Materials

Apple’s recent agreement with MP Materials highlights national security and economic implications.

Apple’s $500 million deal with MP Materials strengthens U.S. mineral independence

Apple has signed a $500 million deal with MP Materials, the only operator of a rare earth mine in the U.S., to buy rare earth magnets from its new facility in Fort Worth, Texas. The agreement will also lead to the establishment of a recycling plant at MP’s Mountain Pass location in California. This deal not only boosts MP's stock but is also viewed as a significant victory for President Trump, as it supports U.S. control over critical mineral supply chains, aligning with his administration's priorities.

This deal marks a strategic move for Apple amid rising tensions over mineral dependencies. By partnering with a domestic supplier, Apple is reinforcing its commitment to reduce reliance on foreign resources, especially from China, which controls a large portion of global rare earth production. This development could encourage other tech companies to explore U.S.-based alternatives, thereby reshaping the landscape of manufacturing and mineral sourcing in America.

Highlights

As U.S. companies push for mineral independence, the landscape of technology supply chains may undergo significant changes.