Apple Secures $500M Deal with MP Materials to Boost U.S. Rare Earth Magnet Supply

Apple has signed a $500 million deal with MP Materials to secure a long-term supply of rare earth magnets, a move aimed at reducing reliance on China and reinforcing its U.S. supply chain. The agreement marks a significant win for MP Materials (NYSE:MP), whose shares surged by 20% after the announcement.

As the operator of the only U.S.-based rare earths mine, MP recently partnered with the U.S. Department of Defense in a multibillion-dollar deal, making the Pentagon its largest shareholder. This new contract with Apple ensures the tech giant a stable supply of China-free rare earth magnets beginning in 2027, with a $200 million prepayment included.

The magnets will be produced at MP’s Fort Worth, Texas, facility using recycled materials sourced from its Mountain Pass, California, site. This aligns with Apple’s goal to minimize its reliance on traditional mining and increase the use of recycled components across its devices.

Rare earth magnets are critical for powering core functions in Apple products, including haptics and speakers. While Apple hasn’t specified which devices will use the magnets, MP stated the deal will support hundreds of millions of units—suggesting a broad integration across Apple’s product ecosystem.

Apple’s move comes after China imposed export controls on rare earths earlier this year, reigniting supply chain concerns. Although tensions eased with a June trade agreement, the need for non-Chinese sources remains urgent.

The deal supports Apple’s broader $500 billion U.S. investment plan and positions it more favorably with policymakers, especially as it faces ongoing scrutiny over overseas manufacturing. MP also holds supply contracts with GM and Germany’s Vacuumschmelze, reinforcing its role in reshoring critical materials essential for electronics, EVs, and defense applications.