California: In an effort to secure essential parts for its products and lessen dependency on supply networks headquartered in China, Apple has inked a US$500 million supply agreement with MP Materials for rare earth magnets.
MP Materials will receive a $200 million prepayment as part of the multi-year agreement. MP Materials will begin supplying Apple with magnets made at its Fort Worth, Texas, factory in 2027. Materials reclaimed from MP’s Mountain Pass mining operation in California will be used to make the magnets.
Rare earth materials are necessary for making technological advances, and this collaboration will help strengthen the supply of these vital materials here in the United States,” Tim Cook, CEO of Apple, stated.
The deal supports the Trump administration’s efforts to shift the sourcing of vital minerals and electronics manufacturing away from China. It comes after last week’s announcement that the U.S. Department of Defense had reached a multibillion-dollar agreement with MP Materials, therefore becoming the company’s biggest financial sponsor and stakeholder.
The production of magnets used in electronics, electric cars, and military systems depends on rare earths, a group of 17 metals. In March, rare earth exports were briefly suspended by China, the world’s largest supplier, due to a trade conflict with President Trump.
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