Apple and MP Materials announced on July 15 a $500 million deal to expand the nation’s only rare-earth processing plant, supporting the production of recycled magnets that will help power Apple smartphones and other devices.
Under the agreement, MP Materials will supply Apple with magnets manufactured at its Fort Worth, Texas, facility—known as Independence—using recycled rare-earth feedstock processed at MP Materials’ Mountain Pass site in California.
Apple stated that the commitment is part of the company’s pledge to spend more than $500 billion in the United States in the next four years.
“American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the U.S. economy,” Apple CEO Tim Cook said.
“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.”
Rare-earth magnets are crucial components in smartphones, computers, wearables, and other electronic devices, as well as in vehicles, robotics, and energy systems. The feedstock will be sourced from post-industrial and end-of-life magnets.
“This collaboration deepens our vertical integration, strengthens supply chain resilience, and reinforces America’s industrial capacity at a pivotal moment,” MP Materials Chairman and CEO James Litinsky said.
According to the agreement, Apple and MP Materials will develop a factory in Texas, with a series of neodymium magnet manufacturing lines, specifically for Apple products. The new equipment and technical capacity will enable MP Materials to significantly increase its overall production.
The Apple deal comes after the Las Vegas-based rare-earths miner announced a public-private partnership with the Department of Defense (DOD) on July 11 to strengthen the country’s rare-earth magnet supply chain and reduce U.S. reliance on China and other nations.
That multibillion-dollar investment package and long-term commitments from the DOD will enable MP Materials to build a second end-to-end domestic magnet manufacturing plant, called 10X Facility, at a location to be chosen soon, serving both defense and commercial markets.
MP Materials also has a similar agreement with General Motors to supply U.S.-sourced and manufactured rare-earth materials, alloy, and finished magnets for the electric motors in more than a dozen models manufactured by the Detroit automaker.
In January, MP Materials broke ground for its 200,000-square-foot rare-earth processing facility in Fort Worth, which is expected to gradually ramp up production later this year.
In pre-market trading on July 15, shares of MP Materials rose by nearly 9 percent, or $4.28, to $52.81. Shares of Apple were up by 58 cents to $209.20 on the Nasdaq.
MP Materials’ stock has surged by more than 56 percent since its deal with the DOD on July 11, making the Pentagon the largest shareholder in the rare-earth mining company.
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