Apple announced Tuesday that it is committing $500 million to a partnership with American mining company MP Materials. The partnership will invest in American-made rare earth magnets and seeks to develop a recycling facility that would reinforce the U.S. supply chain.
MP Materials is the only fully integrated rare earth producer in the United States. As part of the multi-year deal, Apple has committed to buying American-made rare earth magnets developed by MP Materials at its facility in Fort Worth, Texas. MP Materials stock has climbed 23% since the deal's announcement, according to CNBC.
Magnets like the ones produced by MP are used in the haptic engine of iPhones, which allows the iPhone to buzz and vibrate as part of a notification. These magnets are also used inside other Apple products as part of the microphone and audio equipment.
The new commitment from Apple is part of the company's pledge to spend more than $500 billion in the U.S. over the next four years. While the two companies didn’t specify how long the contract lasts, Apple has described it as a “multiyear deal,” and MP said magnet shipments are expected to begin in 2027.
“American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the U.S. economy,” said Apple’s CEO, Tim Cook. “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."
The two companies will also work together to establish a rare earth recycling line in Mountain Pass, California, and to develop new technologies that enhance magnet performance and recycling.
"When complete, the new recycling facility in Mountain Pass, California will enable MP Materials to take in recycled rare earth feedstock— including material from used electronics and post-industrial scrap—and reprocess it for use in Apple products," said Apple's press release. "The companies will continue to innovate together to improve magnet production, as well as end-of-life recovery."
Apple's announcement comes two months after President Trump called for Apple to relocate iPhone manufacturing to the United States. President Trump announced his challenge to the company in a post on Truth Social on May 23, 2025.
"I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," said President Trump. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!"
Apple currently sources its rare-earth magnets from Asia, mainly from a Chinese supplier called Baotou INST Magnetic New Materials, according to its supplier list. Prior to its deal with American-producer MP Materials, Apple has focused on diversifying its supply chain from China in favor of other Asian countries, including India and Vietnam, while making smaller investments in the U.S.
Earlier this month, the Department of Defense also became the largest shareholder in MP Materials, buying $400 million in preferred stock. Federal investment in the rare earth magnet supply in the United States is the latest move to curb U.S. reliance on China.