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MP Materials signs $500 million deal with Apple

MP Materials announced a $500 million agreement with Apple to boost magnet production.

July 15, 2025 at 09:12 PM

Sole US producer of rare earths gets boost from Apple and military deals

MP Materials has entered a $500 million agreement with Apple to increase magnet production.

MP Materials secures major deals with Apple and the Pentagon

MP Materials, the operator of the only rare earths mine in the United States, announced a $500 million deal with Apple on Tuesday. This agreement aims to produce powerful magnets for iPhones and electric vehicles. Additionally, the U.S. Defense Department has invested $400 million in MP Materials, becoming the largest shareholder. This investment commits the Pentagon to purchase all magnets produced in a new plant for the first ten years. Analysts see these deals as essential for reshaping supply chains dominated by China. The agreements will also help MP expand its Texas factory and address domestic demand for rare earth elements.

Key Takeaways

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MP Materials secures a $500 million deal with Apple to produce magnets.

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The Pentagon's $400 million investment makes it the largest shareholder.

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These agreements aim to reduce U.S. reliance on Chinese rare earth elements.

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MP Materials plans to expand production facilities in Texas.

"This is the kind of long-term commitment needed to reshape global rare earth supply chains."

Neha Mukherjee emphasizes the significance of the Pentagon's investment for supply chains.

"Expanding extraction is great, and we need more of it and investments along the value chain."

Steve Christensen supports increased domestic production to reduce dependency on China.

The partnerships between MP Materials and major organizations reflect a strategic shift in the U.S. approach to rare earth supply chains. The commitment from the Pentagon and Apple highlights the importance of reducing dependence on Chinese production. There is a growing recognition that investing in domestic production is not just beneficial, but necessary for national security. However, the fact that MP cannot currently meet all U.S. demand suggests that a long-term solution will require more than just these deals. The dynamics of global trade continue to evolve, posing both opportunities and significant challenges for companies in this sector.

Highlights

MP Materials is on the path to reshape global supply chains.
Investments in rare earth production are critical for U.S. security.
Reducing dependence on China is an urgent priority.
Domestic production of rare earths could spell a new era for tech.

Potential supply chain risks

The reliance on rare earths from a single U.S. source may lead to critical shortages if global tensions rise. MP Materials currently cannot meet all domestic demand, raising concerns over supply stability.

The potential benefits of these deals go beyond immediate profits; they could reshape U.S. manufacturing.

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rareearths apple mpmaterials pentagon trade business technology politics

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