Apple to invest $500 million in rare earth magnets to strengthen U.S. supply chain

Apple has announced a major $500 million investment in a partnership with MP Materials, the only fully integrated rare earth producer in the United States. This long-term agreement aims to supply American-made rare earth magnets for Apple products such as the iPhone, MacBook, and Apple Watch. The investment also supports job creation and the development of recycling technologies, according to 9to5Mac.

Agreement Details

As part of the deal, Apple will fund the expansion of MP Materials’ facility in Fort Worth, Texas. The site, known as "Independence," will host production lines specifically for neodymium magnets designed for Apple products. Initial deliveries are scheduled for 2027, and MP Materials estimates these will support the manufacturing of hundreds of millions of Apple devices.

Additionally, the two companies will jointly develop a state-of-the-art rare earth recycling line in Mountain Pass, California. This facility will recycle electronics and industrial waste, converting them into raw materials for new magnets that meet Apple’s stringent standards. Apple and MP Materials have been collaborating on recycling technologies for nearly five years, beginning with the introduction of recycled rare earth elements in the Taptic Engine of the iPhone 11 in 2019.

Geopolitical and Environmental Context

This deal carries strategic weight amid growing trade tensions between the U.S. and China, which controls over 90% of global rare earth magnet production. In April 2025, China imposed restrictions on rare earth exports in response to U.S. tariffs, highlighting the need to diversify supply chains. By investing in MP Materials, Apple aims to reduce its reliance on Chinese sources.

The partnership also aligns with Apple’s environmental goals. Today, nearly all magnets in Apple devices are made from 100% recycled rare earth elements. The new project will enhance this initiative by enabling recycling of materials from obsolete devices and industrial waste.

Economic and Political Significance

The agreement is part of Apple’s broader commitment to invest over $500 billion in the U.S. economy over four years. This program includes projects in chip manufacturing in Arizona, AI server infrastructure in Houston, and Apple TV+ content production. These investments are also expected to create around 20,000 new jobs in the U.S., including the training of magnet manufacturing specialists.

Amid pressure from President Donald Trump’s administration, which has been pushing for iPhone production to move to the U.S., this deal may be seen as a step toward meeting White House demands. However, experts point out that fully relocating iPhone production to the U.S. remains a complex challenge due to a lack of specialized labor and infrastructure.

The Role of MP Materials

MP Materials, which owns the only active rare earth mine in the U.S. (located in Mountain Pass), recently received support from the Pentagon, which became its largest shareholder with a $400 million stake. This underscores the company’s strategic importance for national security and U.S. technological independence. Following the announcement of the deal with Apple, MP Materials’ stock rose by 20–25%, reflecting investor confidence in the partnership.

Conclusion

Apple’s $500 million investment in MP Materials is not only a move to strengthen its supply chain, but also a strategic effort to guard against geopolitical risks and promote environmental sustainability. The partnership will help Apple secure a stable supply of rare earth magnets, support the U.S. economy, and create new jobs. This project illustrates how tech giants are adapting to global shifts by combining innovation with sustainable development.