On July 15, Apple Inc. and U.S. rare earth company MP Materials announced a $500 million agreement to procure rare earth magnets and jointly establish a rare earth recycling facility in California. This marks a significant move by the U.S. tech giant to support a domestic critical mineral supply chain, reducing reliance on Chinese rare earths.
It is reported that Apple will procure rare earth magnets from MP Materials’ factory in Texas. MP Materials is already producing mined and processed rare earths and expects to start commercial production of rare earth magnets at its Texas facility by the end of this year. Additionally, the two companies plan to collaborate on building a new rare earth recycling production line in Mountain Pass, California. MP Materials plans to begin shipping magnets in 2027.
Rare earth magnets, with their strong magnetic properties, are critical materials in modern industry, with a wide range of applications. In consumer electronics, they are essential for components such as vibration motors in smartphones and speakers in computers, enabling stable and efficient operation. In the automotive sector, they power motors for window lifts and seat adjustments in conventional vehicles, while in electric vehicles, they are core to drive motors, enhancing efficiency and extending range. In renewable energy systems, permanent magnet synchronous motors in wind turbines rely on them for efficient wind energy conversion. Additionally, industrial robots, medical devices, and aerospace equipment leverage their strong magnetism and stability for high-performance operations.
MP Materials is the only U.S. company with a rare earth mine, currently operating a rare earth mining and processing facility in Mountain Pass, California. Notably, just last week, the U.S. Department of Defense announced a $400 million investment in MP Materials to build a new factory. By acquiring a 15% stake, the Pentagon will become MP’s largest shareholder. The Department of Defense also agreed to purchase neodymium-iron-boron (NdFeB) products from the factory at a floor price of $110 per kilogram. MP stated that the new factory is expected to begin trial operations in 2028, increasing the U.S. annual magnet production capacity to 10,000 tons. In addition to the Pentagon’s investment, subsidiaries of JPMorgan Chase and Goldman Sachs have committed $1 billion to cover the construction and development costs of the factory.
