Shares of MP Materials (NYSE:MP) surged 8% in premarket trading Tuesday after reports emerged that Apple (NASDAQ:AAPL) is preparing to invest $500 million in the U.S.-based rare earths company.
The arrangement would see MP Materials supply neodymium magnets—crucial components for many Apple products—from its Fort Worth, Texas facility. In addition, Apple and MP Materials reportedly plan to establish a rare earth recycling operation in Mountain Pass, California, which will process material from both end-of-life electronics and post-industrial sources.
“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 Tim Cook, CEO of Apple.
As the only fully integrated rare earths producer operating domestically, MP Materials is well-positioned to expand its manufacturing capabilities and create jobs in R&D and high-tech manufacturing. The two firms are expected to collaborate on training programs to build a skilled workforce to support the new operations.
The California recycling site will be designed to convert recovered rare earth material into high-grade inputs that meet Apple’s rigorous specifications. Apple and MP Materials have reportedly been developing and testing cutting-edge recycling methods over the last five years, with the goal of reusing rare earth magnets in Apple’s supply chain.
Recycled rare earths were first featured in Apple’s iPhone 11, specifically in the Taptic Engine. Since then, the company says nearly all magnets across its product range are made with 100% recycled rare earth content.
This investment is part of Apple’s broader pledge to contribute more than $500 billion to the U.S. economy over the next four years. The magnets manufactured through this partnership will be shipped worldwide to meet rising demand.
MP Materials owns and operates the only rare earth mine in the United States and is preparing to launch commercial-scale magnet production at its Texas site by late 2025.
The reported Apple deal comes shortly after MP Materials secured a multibillion-dollar agreement with the U.S. Department of Defense. That deal is aimed at ramping up domestic output of rare earth magnets and reducing U.S. dependence on Chinese supply chains for critical materials used in defense, electric vehicles, and electronics.
According to Fox Business, the partnership also includes plans to construct another magnet production facility in Fort Worth and finalize the recycling facility in Mountain Pass.
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