Apple has signed a $500 million deal with MP Materials to secure a long-term supply of rare earth magnets from the United States, as companies look to reduce reliance on China for critical components.
The agreement includes a $200 million prepayment and will supply magnets for Apple devices starting in 2027.
MP Materials is based in Las Vegas and operates the only rare earths mine in the U.S. The magnets will be made at its facility in Fort Worth, Texas, using recycled materials from its Mountain Pass site in California.
The companies did not say how long the contract will last or how many magnets will be provided.
Apple said the deal supports its effort to move away from mining and toward recycled inputs. The magnets are used in various devices and electronics, including smartphones.
The agreement is also part of Apple’s $500 billion four-year investment plan in the United States.
MP’s stock price has nearly doubled in recent days after it also reached a multibillion-dollar agreement with the U.S. Department of Defence. That deal includes a price floor for rare earths and will make the Pentagon its largest shareholder.
China placed export limits on rare earths in April following U.S. tariffs. Although trade talks in June reduced some of the tensions, Apple and other companies continue to seek non-Chinese supply chains to avoid risks from future restrictions.
MP also has magnet supply contracts with General Motors and Germany’s Vacuumschmelze. Rare earth magnets are used in electric vehicles, weapons, and many other technologies.
