Apple commits $500m to US rare earth magnet supply

Apple has announced a US$500 million partnership with MP Materials, the only fully integrated rare earth producer in the US.

This collaboration aims to enhance domestic production of rare earth magnets, including new manufacturing lines at MP Materials’ facility in Fort Worth, Texas, for Apple products.

It will also create a rare earth recycling facility in California using recycled electronics and industrial scrap.

The companies have collaborated for nearly five years to refine recycling technology that meets Apple’s performance standards.

The move aims to strengthen the domestic supply chain, create jobs, and train a specialized workforce.

Apple began using 100% recycled rare earth magnets in 2019 and plans to invest US$500 billion in the US over the next four years.

🔗 Source: Apple

🧠 Food for thought

1️⃣ Rare earth elements represent a critical national security priority, not just a supply chain issue

Apple’s $500 million commitment to MP Materials reflects a broader geopolitical strategy to reduce dependence on Chinese rare earth supplies that has been years in the making.

China currently dominates the global rare earth market, accounting for approximately 60% of mining output and 90% of processing capacity, creating significant supply vulnerabilities for Western tech companies and defense manufacturers 1.

This dependence became particularly concerning after China temporarily restricted rare earth exports in 2010, triggering price spikes and highlighting the risks of relying on a single source for these critical materials 2.

The strategic importance is highlighted by the Pentagon’s $400 million investment in MP Materials for a 15% ownership stake, along with a commitment to purchase all magnets produced at their facility for a decade 3, 4.

The F-35 fighter aircraft alone requires 920 pounds of rare earth materials, illustrating why securing domestic supply is considered essential for national security beyond commercial applications 5.

Apple’s investment represents a rare convergence of private sector, government, and national security interests working toward rebuilding American manufacturing capability in a strategically vital sector.