Apple and MP Materials have entered a $500 million agreement aimed at enhancing the US supply chain for rare earth materials, which are essential for manufacturing advanced technology like smartphones, electric vehicles (EVs), and renewable energy systems. The deal, announced on July 15, will involve the development of new manufacturing and recycling facilities in Texas and California, reinforcing Apple’s ongoing commitment to American manufacturing and sustainability.Under the agreement, Apple will purchase US-made rare earth magnets from MP Materials’ flagship facility in Fort Worth, Texas. The magnets, which are critical for the production of electronic devices, will be produced using cutting-edge manufacturing techniques designed specifically for Apple products. The Fort Worth facility will include new neodymium magnet manufacturing lines, boosting MP Materials’ capacity to meet rising global demand for these essential materials.<h2>Boosting domestic magnet production and recycling capacity</h2>In addition to the magnet manufacturing expansion in Texas, the two companies will collaborate on establishing a new rare earth recycling line in Mountain Pass, California. This facility will focus on recycling rare earth elements from used electronics and post-industrial scrap, creating a more sustainable loop for critical materials. Apple has been a leader in integrating recycled rare earth materials into its products. The company first introduced recycled rare earth elements into the Taptic Engine of the iPhone 11 in 2019, and now nearly all magnets in its devices are made with 100 per cent recycled rare earths.MP Materials, the only fully integrated rare earth producer in the United States, has been critical to reducing US dependence on China, which controls most of the global supply of rare earth elements. The new partnership will further solidify the US as a key player in the global rare earths market and help address the strategic challenge of securing domestic sources for these critical materials. MP Materials has already agreed to a multibillion-dollar deal with the US Department of Defense to ramp up rare earth production, and the new deal with Apple is expected to strengthen that initiative.“American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the US economy,” said Apple CEO Tim Cook in a press release. “Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States.”<h2>Creating jobs and strengthening national security</h2>This collaboration is poised to create dozens of new jobs in advanced manufacturing, research and development, and rare earth recycling. As the US government continues its efforts to curb reliance on foreign sources for critical materials, including rare earths, the Apple-MP Materials deal represents a significant step forward in fortifying national security and economic resilience.MP Materials’ stock surged 20 per cent following the announcement, highlighting investor optimism about the long-term growth potential of the rare earth sector. The company, which operates the Mountain Pass mine in California, has already seen its stock price nearly quadruple in value since the beginning of the year, reflecting growing demand for domestic rare earth production. Apple’s investment in the rare earth industry is also part of a broader $500 billion initiative aimed at bolstering US manufacturing capabilities over the next four years, including plans for new factories and technological advancements in sectors like artificial intelligence (AI).The partnership between Apple and MP Materials is expected to have a far-reaching impact, not only strengthening the US supply chain for rare earths but also driving forward innovation in sustainable recycling technologies and manufacturing processes. As global demand for rare earth materials continues to rise, this collaboration aims to position the United States as a leader in the production of critical materials necessary for the technologies of tomorrow.

Under the agreement, Apple will purchase US-made rare earth magnets from MP Materials’ flagship facility in Fort Worth, Texas and the magnets will be produced using cutting-edge manufacturing techniques designed specifically for Apple products.

Apple and MP Materials have entered a $500 million agreement aimed at enhancing the US supply chain for rare earth materials, which are essential for manufacturing advanced technology like smartphones, electric vehicles (EVs), and renewable energy systems. The deal, announced on July 15, will involve the development of new manufacturing and recycling facilities in Texas and California, reinforcing Apple’s ongoing commitment to American manufacturing and sustainability. Under the agreement, Apple will purchase US-made rare earth magnets from MP Materials’ flagship facility in Fort Worth, Texas. The magnets, which are critical for the production of electronic devices, will be produced using cutting-edge manufacturing techniques designed specifically for Apple products. The Fort Worth facility will include new neodymium magnet manufacturing lines, boosting MP Materials’ capacity to meet rising global demand for these essential materials. Boosting domestic magnet production and recycling capacity In addition to the magnet manufacturing expansion in Texas, the two companies will collaborate on establishing a new rare earth recycling line in Mountain Pass, California. This facility will focus on recycling rare earth elements from used electronics and post-industrial scrap, creating a more sustainable loop for critical materials. Apple has been a leader in integrating recycled rare earth materials into its products. The company first introduced recycled rare earth elements into the Taptic Engine of the iPhone 11 in 2019, and now nearly all magnets in its devices are made with 100 per cent recycled rare earths. MP Materials, the only fully integrated rare earth producer in the United States, has been critical to reducing US dependence on China, which controls most of the global supply of rare earth elements. The new partnership will further solidify the US as a key player in the global rare earths market and help address the strategic challenge of securing domestic sources for these critical materials. MP Materials has already agreed to a multibillion-dollar deal with the US Department of Defense to ramp up rare earth production, and the new deal with Apple is expected to strengthen that initiative. “American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the US economy,” said Apple CEO Tim Cook in a press release. “Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States.” Creating jobs and strengthening national security This collaboration is poised to create dozens of new jobs in advanced manufacturing, research and development, and rare earth recycling. As the US government continues its efforts to curb reliance on foreign sources for critical materials, including rare earths, the Apple-MP Materials deal represents a significant step forward in fortifying national security and economic resilience. MP Materials’ stock surged 20 per cent following the announcement, highlighting investor optimism about the long-term growth potential of the rare earth sector. The company, which operates the Mountain Pass mine in California, has already seen its stock price nearly quadruple in value since the beginning of the year, reflecting growing demand for domestic rare earth production. Apple’s investment in the rare earth industry is also part of a broader $500 billion initiative aimed at bolstering US manufacturing capabilities over the next four years, including plans for new factories and technological advancements in sectors like artificial intelligence (AI). The partnership between Apple and MP Materials is expected to have a far-reaching impact, not only strengthening the US supply chain for rare earths but also driving forward innovation in sustainable recycling technologies and manufacturing processes. As global demand for rare earth materials continues to rise, this collaboration aims to position the United States as a leader in the production of critical materials necessary for the technologies of tomorrow.

Under the agreement, Apple will purchase US-made rare earth magnets from MP Materials’ flagship facility in Fort Worth, Texas and the magnets will be produced using cutting-edge manufacturing techniques designed specifically for Apple products.

Apple aims to bolster US supply chain with $500 million deal with MP Materials for rare earth magnets

The United States has taken a bold step to challenge China’s near-monopoly over the rare earths market, unveiling a government-backed pricing system designed to kick-start investment in its own domestic industry, even if it means higher costs for buyers.&nbsp;The new initiative, led by the US Department of Defense (DoD), will guarantee a minimum price of $110 per kilogram for two of the most sought-after rare earth metals, neodymium, and praseodymium (NdPr). These elements are critical for producing high-strength magnets used in electric vehicles (EVs), wind turbines and advanced military systems such as drones and fighter jets. As per Reuters, the pricing floor is almost double the current China-set market price of around $63/kg, signalling Washington’s intent to end reliance on low-cost Chinese supply that has long undercut Western competition.<h2>A shift in global pricing power</h2>China currently controls around 90 per cent of global rare earth supply, with its state-influenced pricing model widely blamed for discouraging mining and processing investment elsewhere. For years, Western miners have called for an alternative pricing system to make non-Chinese production viable. Analysts say the US-backed floor price represents a major new benchmark in the industry.&nbsp;“This benchmark is now a new centre of gravity in the industry that will pull prices up,” said Ryan Castilloux, managing director of consultancy Adamas Intelligence, as quoted by Reuters.&nbsp;The deal gives MP Materials, America’s only large-scale rare earth miner, a guaranteed market. Under the agreement revealed last Thursday, the DoD will pay MP the difference if market prices remain below $110/kg. If prices climb higher, the government will share 30 per cent of MP’s additional profits.<h2>MP Materials to expand production</h2>Las Vegas-based MP Materials already mines and processes rare earths and is preparing to start commercial magnet production at its new Texas facility by the end of this year. The company plans an initial output of 1,000 metric tonnes of magnets annually, expanding to 3,000 tonnes, and ultimately building a second US plant that would add 7,000 tonnes per year. Total production of 10,000 tonnes would roughly match US magnet consumption recorded in 2024, according to Adamas.&nbsp;The deal also gives the DoD a 15 per cent stake in MP Materials, ensuring a government-backed anchor investor to de-risk expansion plans. Reuters reports that this level of output, while significant, does not include the 30,000 tonnes of magnets already imported annually by the US in finished goods.<h2>Strategic race for supply chain control</h2>Global demand for rare earth permanent magnets is forecast to more than double over the next decade to about 607,000 tonnes, with the US expected to see the highest annual growth rate of around 17 per cent, as per Adamas. The geopolitical context is unmistakable. China has demonstrated its leverage in this sector by curbing rare earth exports during trade tensions. The US and its allies fear that continued dependence leaves critical supply chains dangerously exposed.&nbsp;“It will give Solvay and others the impetus to command a similar price level. It will give them a floor to stand on,” Castilloux added, referring to Belgian chemicals giant Solvay, which announced a rare earth expansion in April. While Solvay declined to comment to Reuters, other miners, developers and investors have broadly welcomed the US pricing plan. Aclara Resources, which is developing mines in Chile and Brazil and planning a US separation plant, said the deal opens “new strategic paths” for the company.<h2>Costs and market uncertainty</h2>While good news for miners, the pricing floor is likely to raise costs for consumers, such as automakers and wind turbine producers.&nbsp;David Merriman of consultancy Project Blue told Reuters the guaranteed price band of $75–$105/kg had been seen as the minimum needed to spur new non-Chinese production. The new US floor of $110/kg is even more generous, but it remains unclear how industrial buyers will react. “Major non-government backed consumers are less likely to follow this same investment pattern, however, as they are not so clearly aligned to a particular regional supply route,” Merriman said.&nbsp;Volkswagen, when asked by Reuters about the new pricing floor, declined to comment on specific prices but noted it “welcomes all efforts to strengthen long-term stability and diversification in global supply chains for critical materials.”<h2>Can the US scale up?</h2>Dominic Raab, former UK deputy prime minister and now head of global affairs at Appian Capital Advisory, told Reuters that piecemeal deals and tax breaks alone had proved insufficient in building competitive Western supply chains. “The next step is, can they scale it up?” Raab asked.&nbsp;Washington’s new plan signals a willingness to directly subsidise prices to drive a shift in global market dynamics. If successful, it could finally help diversify critical mineral supply chains away from China, a goal Western governments have pursued for years with limited success.

Led by the Department of Defense, the plan guarantees subsidies to US miner MP Materials, signals a new benchmark in global rare earth pricing, and gives Washington a stake in the critical mineral supply chain. The move marks a bold shift from market dependence to state backed industrial policy.

The United States has taken a bold step to challenge China’s near-monopoly over the rare earths market, unveiling a government-backed pricing system designed to kick-start investment in its own domestic industry, even if it means higher costs for buyers. The new initiative, led by the US Department of Defense (DoD), will guarantee a minimum price of $110 per kilogram for two of the most sought-after rare earth metals, neodymium, and praseodymium (NdPr). These elements are critical for producing high-strength magnets used in electric vehicles (EVs), wind turbines and advanced military systems such as drones and fighter jets. As per Reuters, the pricing floor is almost double the current China-set market price of around $63/kg, signalling Washington’s intent to end reliance on low-cost Chinese supply that has long undercut Western competition. A shift in global pricing power China currently controls around 90 per cent of global rare earth supply, with its state-influenced pricing model widely blamed for discouraging mining and processing investment elsewhere. For years, Western miners have called for an alternative pricing system to make non-Chinese production viable. Analysts say the US-backed floor price represents a major new benchmark in the industry. “This benchmark is now a new centre of gravity in the industry that will pull prices up,” said Ryan Castilloux, managing director of consultancy Adamas Intelligence, as quoted by Reuters. The deal gives MP Materials, America’s only large-scale rare earth miner, a guaranteed market. Under the agreement revealed last Thursday, the DoD will pay MP the difference if market prices remain below $110/kg. If prices climb higher, the government will share 30 per cent of MP’s additional profits. MP Materials to expand production Las Vegas-based MP Materials already mines and processes rare earths and is preparing to start commercial magnet production at its new Texas facility by the end of this year. The company plans an initial output of 1,000 metric tonnes of magnets annually, expanding to 3,000 tonnes, and ultimately building a second US plant that would add 7,000 tonnes per year. Total production of 10,000 tonnes would roughly match US magnet consumption recorded in 2024, according to Adamas. The deal also gives the DoD a 15 per cent stake in MP Materials, ensuring a government-backed anchor investor to de-risk expansion plans. Reuters reports that this level of output, while significant, does not include the 30,000 tonnes of magnets already imported annually by the US in finished goods. Strategic race for supply chain control Global demand for rare earth permanent magnets is forecast to more than double over the next decade to about 607,000 tonnes, with the US expected to see the highest annual growth rate of around 17 per cent, as per Adamas. The geopolitical context is unmistakable. China has demonstrated its leverage in this sector by curbing rare earth exports during trade tensions. The US and its allies fear that continued dependence leaves critical supply chains dangerously exposed. “It will give Solvay and others the impetus to command a similar price level. It will give them a floor to stand on,” Castilloux added, referring to Belgian chemicals giant Solvay, which announced a rare earth expansion in April. While Solvay declined to comment to Reuters, other miners, developers and investors have broadly welcomed the US pricing plan. Aclara Resources, which is developing mines in Chile and Brazil and planning a US separation plant, said the deal opens “new strategic paths” for the company. Costs and market uncertainty While good news for miners, the pricing floor is likely to raise costs for consumers, such as automakers and wind turbine producers. David Merriman of consultancy Project Blue told Reuters the guaranteed price band of $75–$105/kg had been seen as the minimum needed to spur new non-Chinese production. The new US floor of $110/kg is even more generous, but it remains unclear how industrial buyers will react. “Major non-government backed consumers are less likely to follow this same investment pattern, however, as they are not so clearly aligned to a particular regional supply route,” Merriman said. Volkswagen, when asked by Reuters about the new pricing floor, declined to comment on specific prices but noted it “welcomes all efforts to strengthen long-term stability and diversification in global supply chains for critical materials.” Can the US scale up? Dominic Raab, former UK deputy prime minister and now head of global affairs at Appian Capital Advisory, told Reuters that piecemeal deals and tax breaks alone had proved insufficient in building competitive Western supply chains. “The next step is, can they scale it up?” Raab asked. Washington’s new plan signals a willingness to directly subsidise prices to drive a shift in global market dynamics. If successful, it could finally help diversify critical mineral supply chains away from China, a goal Western governments have pursued for years with limited success.

The US sets a rare earth pricing floor to counter China’s dominance, backing MP Materials with guaranteed rates and DoD equity. The strategy aims to reboot domestic supply chains—but at a cost to global buyers.

US planned to break China’s rare earth dominance with new pricing system: Details here

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Apple aims to bolster US supply chain with $500 million deal with MP Materials for rare earth magnets

US planned to break China’s rare earth dominance with new pricing system