Apple invests $500M in MP Materials to break China’s rare earths grip and boost U.S. manufacturing

Apple is stepping deeper into U.S. manufacturing—and this time, it’s going underground.

The company announced Tuesday a $500 million investment in MP Materials, a rare earths mining and processing company based in Las Vegas. The move signals Apple’s latest effort to localize more of its supply chain and reduce reliance on China, especially for materials that are critical to modern electronics.

“Today, Apple announced a new commitment of $500 million with MP Materials, the only fully integrated rare earth producer in the United States. With this multiyear deal, Apple is committed to buying American-made rare earth magnets developed at MP Materials’ flagship Independence facility in Fort Worth, Texas. The two companies will also work together to establish a cutting-edge rare earth recycling line in Mountain Pass, California, and develop novel magnet materials and innovative processing technologies to enhance magnet performance,” Apple said in a news release.

Rare earths aren’t rare in name only—they’re a group of 17 metals used to make high-performance magnets, the kind that turn electricity into motion inside everything from iPhones to electric vehicles. For years, China has controlled the lion’s share of global supply. But as trade tensions with the U.S. have escalated, including a temporary export halt by China in March, companies like Apple have been under pressure to rethink where their materials come from.

In a multiyear deal, Apple has committed $500 million to buying American-made rare earth magnets developed at MP Materials’ flagship Independence facility in Fort Worth, Texas. Photo by MP Materials.

MP Materials is already a major player in this space. The company operates a rare earths mine at Mountain Pass, California—the only active and scaled one of its kind in the U.S. It currently ships processed materials overseas for final magnet production, but that’s about to change. Apple’s half-a-billion-dollar backing will help fund MP’s plan to bring that magnet production in-house, starting with its new facility in Fort Worth, Texas, which is expected to begin commercial production by the end of the year.

Apple Bets Big on U.S. Rare Earths to Secure iPhone Supply Chain

As part of the deal, Apple has agreed to purchase U.S.-made rare earth magnets from MP’s Texas plant. It’s the first official supply agreement for MP’s magnets since it secured a major financial support package from the U.S. Department of Defense, Reuters reported.

That deal, announced last week, includes a multibillion-dollar initiative to help the U.S. build out domestic rare earth infrastructure, complete with a price floor to make investment more attractive in a market that’s often undercut by low prices from China.

“American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the U.S. economy,” said Tim Cook, Apple’s CEO. “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. We couldn’t be more excited about the future of American manufacturing, and we will continue to invest in the ingenuity, creativity, and innovative spirit of the American people.”

Shares of MP Materials jumped 10% to $52.37 in premarket trading following the news.

The partnership goes beyond magnets. Apple and MP are also planning to build a second facility in Texas and a recycling center in California near MP’s mine. Apple says this is part of its broader $500 billion commitment to the U.S. economy—an effort that includes everything from chip design to clean energy projects.

Behind all of this is a bigger picture: tech giants are increasingly being drawn into the geopolitics of materials. As rare earths become a pressure point in global trade, Apple is hedging its bets, doubling down on domestic production and diversifying its supply chain. The goal is simple—keep making iPhones without getting caught in the middle of a global tug-of-war.