Apple strengthens its US supply chain with a $500 million investment in MP Materials for rare earth magnets.
In response to pressure from President Donald Trump to manufacture iPhones domestically, Apple has announced a $500 million investment in a partnership with MP Materials, a US rare earths company. This agreement will see Apple purchasing rare earth magnets directly from MP Materials, bolstering its American supply chain.
As part of this collaboration, Apple and MP Materials will establish a new recycling line in California, transforming recycled rare earth materials into components for Apple products. This move is a segment of Apple’s broader $500 billion investment plan to expand its operations in the US, aligning with the Trump administration’s push to diminish reliance on China for technology manufacturing.
Rare earth elements are crucial for a variety of technologies, from smartphones to military equipment. Given China’s near-monopoly on rare earth processing, this partnership is a strategic move in ongoing trade negotiations. “American innovation is at the heart of Apple,” stated Apple CEO Tim Cook. “This partnership will fortify the supply of essential rare earth materials within the United States.”
MP Materials will establish new magnet manufacturing lines at its Fort Worth, Texas, facility exclusively for Apple, with shipments anticipated to commence in 2027. These efforts are projected to support “hundreds of millions of Apple devices” globally, according to MP Materials.
The deal is expected to generate several new jobs, with both companies providing training to nurture a domestic workforce skilled in magnet manufacturing. While China commands a significant share of global rare earth processing, the US aims to develop its capabilities to reduce dependency.
Although the partnership might help Apple align with Trump amid tariff threats, it also dovetails with Apple’s longstanding initiative to incorporate more recycled materials into its products. Notably, the iPhone 16e, released earlier this year, includes 30% recycled content.
Despite Trump’s call for American-made iPhones, Apple has not announced any plans to relocate manufacturing from countries like China and India to the US. Experts point out that the specialized labor required for iPhone production is not readily available in the US, posing a significant challenge to such a move.
Apple’s commitment to investing in US-sourced rare earths is likely to be well-received by Trump, who has hailed previous investments as triumphs for American manufacturing. Apple joins other tech giants like Texas Instruments and TSMC, who have also expanded their US operations in recent months.
