Apple, the tech behemoth, has announced a significant $500 million investment in MP Materials, the sole US producer of rare earth elements, to secure a domestic supply chain for critical components. This strategic partnership aims to bolster American manufacturing and reduce reliance on foreign sources for essential materials used in smartphones and electric vehicles.
In a pivotal move to fortify its domestic supply chain and enhance American manufacturing, tech giant Apple has committed $500 million to MP Materials, the United States’ only producer of rare earth elements. The landmark deal, announced on July 15, 2025, underscores a growing national effort to reduce dependence on foreign sources for critical minerals vital to advanced technology.
The investment specifically targets the purchase of American-made rare earth magnets, which will be developed at MP Materials’ forthcoming facility in Fort Worth, Texas. A key aspect of this collaboration involves the co-development of a factory featuring neodymium magnet production lines, meticulously tailored for Apple’s diverse product ecosystem. This substantial commitment forms part of Apple’s broader strategic initiative to inject more than $500 billion into US manufacturing over the next four years.
Tim Cook, Apple’s chief executive officer, emphasized the importance of the deal, stating, “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 collaboration is also projected to generate dozens of new manufacturing and research and development jobs, further contributing to the domestic economy. Beyond production, the agreement includes a rare earth recycling initiative at MP Materials’ Mountain Pass mine in California, which will transform recycled feedstock into materials for Apple products, promoting sustainable practices. The companies are also set to co-develop new magnet materials and innovative processing technologies to enhance overall performance.
James Litinsky, CEO of MP Materials, echoed Cook’s sentiments, highlighting the broader implications in a separate statement. “This collaboration deepens our vertical integration, strengthens supply chain resilience, and reinforces America’s industrial capacity at a pivotal moment,” Litinsky remarked. This deal follows closely on the heels of a multi-billion-dollar agreement MP Materials secured last week with the US Department of Defense (DoD), aimed at developing a robust domestic rare earth supply chain and mitigating reliance on overseas sources.
The urgency for such domestic initiatives has been exacerbated by recent geopolitical tensions. Earlier this year, following the US imposition of 145% tariffs on Chinese imports, Beijing retaliated by halting exports of rare earth magnets. This move sent shockwaves through global supply chains, forcing companies like Ford and Suzuki to halt some production, and prompting figures such as Elon Musk to cite shortages affecting his robotics operations. Governments worldwide have since been scrambling to secure non-Chinese sources for these critical materials, which are indispensable for electronics, wind turbines, lithium-ion battery for electric vehicles, and even fighter jets.
