Apple Signs $500M Deal to Secure U.S. Rare Earth Magnet Supply Amid China Export Curbs
In a major push to reduce its reliance on China, Apple Signs $500M Deal with MP Materials, a U.S. rare earth magnet producer backed by the Pentagon. China, the world’s biggest exporter of rare earths, put new limits on exports early this year.
U.S.-Based Production Using Recycled Materials
Under the agreement, Apple will receive a steady supply of rare earth magnets made entirely in the United States. Production will take place at MP’s Texas facility. The raw materials will come from recycled materials at MP’s Mountain Pass mining operation in California.
This is in line with Apple’s continued goal to rely less on mining and make its supply chain more environmentally friendly.
Backed by the U.S. Government
This transaction comes after the U.S. government decided to become MP’s biggest shareholder and financial supporter. Experts say this is a significant sign that people trust MP Materials. It also shows how the U.S. is working harder to bring important supply chains back home.
Prepayment and Production Timeline
Apple will pay MP $200 million in advance as part of the deal. It is projected that magnet production and deliveries would start in 2027.
Apple hasn’t said which devices would use the magnets, but MP believes they will power hundreds of millions of items, perhaps including iPhones, Apple Watches, and AirPods.
Why Rare Earth Magnets Matter
There are 17 metals in the rare earths group that are very important for modern electronics. They are utilised in a wide range of things, including electric cars, military technology, and vibration motors for smartphones.
China’s stop on exports has made it even more important to find other places to get these important parts.
Supporting Apple’s U.S. Investment Goals
This deal is part of Apple’s larger $500 billion, four-year investment in U.S. manufacturing. Analysts believe it will help Apple improve its image in Washington, where the company has faced criticism for overseas production.
Apple’s decision may encourage other tech firms to take similar steps in strengthening domestic supply chains.
A Bold Step Toward Supply Chain Resilience
By securing a domestic source for rare earth magnets, Apple is reshaping its future supply strategy. The move not only boosts its manufacturing independence but could also set a precedent for the entire tech industry.
