Apple Secures U.S. Rare Earths in $500 Million Deal

Apple has signed a supply deal $500 million with MP Materials for rare earth magnets in line with the United States push to decrease dependence, on China for essential minerals.

Apple has recently made its pledge to using rare earth materials sourced from the U.S. as revealed in the announcement on Tuesday. Following this news release MPs stock prices saw an increase of 19% whereas Apple experienced a modest rise of, under 1%.

Apple has agreed to make a payment of $200 million to MP as part of their deal to purchase magnets starting in 2027 from MPs Fort Worth plant in Texas.The magnets will be created using recycled materials sourced from MPs Mountain Pass facility, in California.

Rare earth elements play a role in the production of iPhones and electric cars as well as in defense technology development. Due to Chinas move to suspend earth exports during trade disputes in March The United States has been spurred to enhance its efforts in establishing local supply chains. Recently MP company signed a multi billion dollar deal, with the Department of Defense markinng the Pentagon as its primary investor.

Tim Cook, the CEO of Apple mentioned that the agreement would enhance Americas availability to resources for cutting edge technology products according to analysts who believe this decision reinforces Apples focus on manufacturing within the country while facing demands, from President Trump to scale back operations in China.

Apples agreement is a component of its $500 billion plan, for investing in the United States over four years with the goal of restructuring its supply chain presence.