Apple Signs $500 Million Rare Earth Deal with MP Materials to Boost U.S. Supply Chain

 

 

In a significant step toward boosting domestic sourcing, Apple Inc. has signed a $500 million agreement with MP Materials, a leading U.S.-based rare earth producer, to secure a long-term supply of rare earth magnets vital for Apple’s devices including iPhones, MacBooks, and AirPods.

Under the deal, Apple will prepay $200 million, with deliveries scheduled to begin in 2027. This agreement makes Apple one of the first major tech companies to forge a U.S.-based rare earth supply chain in response to growing concerns over China's export restrictions on critical minerals. The deal is also a strategic alignment with the U.S. government’s push to reduce dependency on foreign sources for high-tech components.

Rare earth magnets, particularly neodymium magnets, are crucial in powering compact, high-efficiency motors found in consumer electronics, electric vehicles, and renewable energy technologies. China has traditionally dominated the global rare earth market, accounting for over 85% of rare earth magnet production. However, recent export curbs and geopolitical tensions have accelerated efforts by the U.S. and its allies to build a resilient, secure, and domestic rare earth supply chain.

Industry analysts have hailed the Apple-MP Materials deal as a strategic masterstroke that not only secures critical components but also boosts Apple’s image in Washington, especially as MP Materials is backed by the Pentagon through defense-focused funding programs.

"This partnership marks a turning point in securing a rare earth magnet supply chain that is not only sustainable but also American-made," said James Litinsky, CEO of MP Materials. "We are proud to support Apple’s innovation with rare earth materials sourced and manufactured in the United States."

With this move, Apple reinforces its commitment to supply chain resilience, environmental responsibility, and alignment with national security goals—setting the stage for other tech giants to follow suit.