Apple has signed a $500 million agreement with Pentagon-backed MP Materials, aiming to bring its rare earth magnet supply chain to the United States—marking one of the first major U.S. tech companies to align with domestic sourcing initiatives. MP Materials’ shares surged 26% to a record high on Tuesday, while Apple’s stock rose 1%.
This deal, announced Tuesday, aligns with Apple’s broader strategy to increase iPhone production in the U.S., responding to pressure from the Trump administration to reduce reliance on Chinese manufacturing. The agreement also reflects corporate America’s growing support for U.S. industrial policy. Last week, MP agreed to a multibillion-dollar deal with the Department of Defense, making the Pentagon its largest shareholder and financial backer.
Details on the contract’s length and magnet volumes remain undisclosed, but the magnets will be produced from recycled materials, consistent with Apple’s long-term goal to reduce dependence on mining. Rare earths, a group of 17 metals, are critical for manufacturing magnets that power many devices—from cellphone vibration motors to weapons systems and electric vehicles.
China halted rare earth exports in March amid a trade dispute with the U.S., which showed some easing recently. However, ongoing geopolitical tensions have intensified demand for non-Chinese sources.
Under the agreement, Apple will pre-pay MP Materials $200 million for magnets scheduled to be produced starting in 2027 at MP’s Fort Worth, Texas facility. These magnets will be made using recycled materials from MP’s Mountain Pass, California mining complex.
Apple CEO Tim Cook highlighted the strategic importance, stating, “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.”
Bob O’Donnell, president of TECHnalysis Research, praised the move, saying it “makes complete sense” given Apple’s heavy use of rare earth magnets in its products and noted that sourcing domestically positions Apple favorably with Washington policymakers.
The deal is part of Apple’s broader $500 billion, four-year U.S. investment commitment. Despite pressure from the Trump administration over manufacturing iPhones domestically—often deemed impractical due to labor costs and established supply chains—Apple did not specify which devices will incorporate these magnets. MP Materials indicated the deal will supply magnets for hundreds of millions of devices, potentially covering a substantial portion of Apple’s product range, including wearables like Apple Watches and AirPods.
MP currently produces mined and processed rare earths and expects to begin commercial magnet production at its Texas facility by year-end. The recent government deal also introduces a price floor for rare earths, aimed at encouraging investment in domestic mining and processing—a sector hindered by China’s historically low pricing.
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