Apple (NASDAQ:AAPL) and MP Materials (NYSE:MP) have signed a US$500 million supply agreement to manufacture rare earth magnets in the US from 100 percent recycled materials.
Under the deal, MP will deliver recycled magnets starting in 2027 to support “hundreds of millions” of Apple devices, including iPhones, iPads and MacBooks. Announced on Tuesday (July 15), the deal marks a major step forward in Apple’s plan to build more sustainable domestic supply chains for its core technologies.
“American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the US economy,” Apple CEO Tim Cook said in a press release. “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.”
The two companies spent nearly five years developing recycling technologies capable of meeting Apple’s stringent performance and environmental standards. Now, MP will build a commercial-scale recycling line at its Mountain Pass site to process magnet scrap and recovered components from decommissioned products.
To fulfill Apple’s requirements, MP will also expand its Fort Worth, Texas, facility — dubbed “Independence” — creating dozens of new roles in manufacturing, as well as research and development.
“We are proud to partner with Apple to launch MP’s recycling platform and scale up our magnetics business,” said MP CEO James Litinsky in a separate Tuesday press release. “This collaboration deepens our vertical integration, strengthens supply chain resilience, and reinforces America’s industrial capacity at a pivotal moment.”
MP’s share price soared 20 percent following the news, pushing its market cap to near US$10 billion.
Analysts view the deal as a validation of MP’s strategy to build a fully domestic rare earth magnet supply chain and as a boost to national efforts to reduce reliance on China, which controls roughly 70 percent of global rare earths supply.
MP currently operates the only active US rare earths mine at Mountain Pass. Rare earth magnets produced from its materials power devices ranging from consumer electronics and electric vehicles to wind turbines and defense systems.
MP teams up with defense department
Just days before the Apple deal, MP secured a US$400 million preferred equity investment from the US Department of Defense (DoD), making the Pentagon its largest shareholder.
The funds will support a second magnet manufacturing plant — called the 10X facility — which is slated for commissioning in 2028 and will increase MP’s annual magnet output to 10,000 metric tons.
The government has also committed to purchasing 100 percent of the magnets produced at the new plant for 10 years, guaranteeing a floor price of US$110 per kilogram for neodymium-praseodymium oxide.
If market prices fall below that level, the DoD will pay the difference. Once production begins, the government will also receive 30 percent of any profits above the guaranteed price.
With operations spanning mining, separation, metallization and magnet production, MP is currently the only US firm with end-to-end capabilities for rare earth magnet manufacturing. The company is also expecting a US$150 million Pentagon loan to enhance its heavy rare earths separation capabilities at Mountain Pass.
MP’s Independence facility in Texas, alongside the upcoming 10X plant, anchors its downstream production strategy. The recycled feedstock used for Apple’s magnets will be sourced from post-industrial waste and retired electronics — reducing environmental impact while reinforcing resource resilience.
Apple, for its part, is pressing ahead with its US$500 billion US manufacturing initiative.
Earlier this year, it announced plans for a new artificial intelligence server factory in Texas and signaled continued interest in reshoring key parts of its production ecosystem.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
