Apple Inks $500M Deal With the Only US Rare Earth Miner Amid US-China Trade War
Apple is teaming up with MP Materials, the only rare earth miner in the U.S., to build a $500 million plant in Texas that will recycle and manufacture rare earth magnets—key components used in everything from iPhones to fighter jets. The move comes as the U.S. looks to bring more of its tech supply chain back home and reduce its reliance on China, which currently dominates global rare earth processing. These minerals have been making headlines lately, not just for their role in cutting-edge tech, but also as flashpoints in rising trade tensions between Washington and Beijing.
The new facility will feature neodymium magnet production lines tailored to Apple’s specific hardware needs. It’s part of Apple’s broader plan to invest $500 billion in U.S. manufacturing over four years. MP Materials expects to begin shipping magnets to Apple as early as 2027.
“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,” said Apple CEO Tim Cook in a press release.
Rare earth magnets are critical for a wide range of products, from iPhones and electric vehicles to fighter jets and missile guidance systems. Yet the U.S. has historically depended on China for nearly all rare earth processing. While these minerals are not rare geologically, they are expensive and complex to process, and China currently controls about 92 percent of global output.
Apple’s announcement follows a major move by the U.S. Department of Defense, which last week made a $400 million investment in MP Materials as part of a landmark public-private partnership. The Pentagon purchased a new class of convertible preferred shares along with a 10-year warrant at $30.03 per share. If fully exercised, the government could hold a roughly 15 percent stake in the company—more than major shareholders like BlackRock or co-founder James Litinsky.
Funds from the Defense Department will go toward building another magnet plant, which will produce a new class of “10X” magnets. The Pentagon has committed to purchasing 100 percent of that output over the next decade. That facility is expected to open in 2028 and will boost MP Materials’ annual magnet capacity to 10,000 metric tons—enough to meet a significant share of U.S. demand.
Apple, meanwhile, has already begun reducing its dependence on newly mined rare earths by prioritizing recycled materials. By 2023, the company reported that about two-thirds of the aluminum, three-fourths of the rare earth elements and 95 percent of the tungsten used in its products came from recycled sources. That same year, Apple also pledged to use only recycled cobalt in its batteries going forward.
The moves by Apple and the Pentagon are part of a broader U.S. push to nearshore rare earth supply chains. Earlier this year, President Trump proposed annexing Greenland, an autonomous Danish territory estimated to contain $4.4 trillion worth of rare earth reserves. Vice President JD Vance made a surprise visit in support of the plan.
Meanwhile, rising trade tensions between Washington and Beijing have underscored the strategic importance of rare earth independence. In April, China imposed export restrictions on rare earth minerals bound for the U.S. The controls were lifted on May 11 as part of a 90-day trade truce, but the episode highlighted the risks of continued reliance on China for such critical materials.
