Apple has entered into a $500 million supply agreement with MP Materials to source rare earth magnets from within the U.S., aiming to reduce its reliance on China after Beijing restricted exports earlier this year. The tech giant will pre-pay $200 million to MP, with deliveries set to begin in 2027.
The deal not only ensures a stable, non-Chinese supply of critical materials but also strengthens Apple’s position in Washington, especially amid ongoing political scrutiny over overseas manufacturing. Analysts say the move reflects a growing industry trend to prioritise secure, domestic supply chains—even at higher cost.
MP Materials, which recently secured multibillion-dollar backing from the U.S. Department of Defense, is set to become majority-owned by the Pentagon, underscoring government support for domestic rare earth production. The deal will also include magnets made from recycled materials, aligning with Apple’s sustainability goals.
Rare earth magnets are essential components in smartphones, electric vehicles, and military systems. Apple’s commitment is part of a broader $500 billion four-year investment pledge in the U.S., as it navigates political pressure to onshore more of its production.
Info comes via Reuters
