"Tech + Rare Earths" — Apple Emerges as a Key Backer of MP Materials: A $500 Million Bet on U.S. Rare Earth Supply Chain

TradingKey - According to multiple media reports, Apple (AAPL.US) is preparing to announce a strategic investment of up to $500 million in collaboration with MP Materials , the largest rare earth producer in the United States and operator of the only active rare earth mine in the country — the Mountain Pass mine.

The partnership includes several key components:

• Apple will source high-performance rare earth magnets from MP Materials’ Texas processing facility.
• The two companies plan to build an electronic waste recycling plant at the Mountain Pass site in California, aimed at extracting rare earth materials from old Apple devices.
• Additionally, they will jointly construct a magnet manufacturing plant in Texas, dedicated to supplying magnets for iPhones and other Apple products.

Each iPhone contains about 0.08 grams of rare earth elements , primarily used in speakers, vibration motors, and the MagSafe magnetic module. In 2023, Apple pledged that by 2025, all magnets used in its devices would be made entirely from recycled rare earth materials . This latest move marks a crucial step toward achieving a greener and more self-reliant supply chain.

Following the news, shares of MP Materials (MP.US) surged as much as 14% in pre-market trading on July 15, reflecting strong market recognition of the company’s strategic value. The stock ultimately closed up 19.99%.

Just days earlier, the U.S. Department of Defense announced it would invest $400 million to acquire preferred shares in MP Materials. It also committed to purchasing 100% of the rare earth magnets produced by the company over the next decade, setting a minimum procurement price of $110 per kilogram for neodymium-praseodymium oxide — significantly higher than current Chinese market prices (around $45.6 per kilogram). This pricing mechanism could potentially reshape global rare earth pricing dynamics.

CITIC Securities pointed out that this guaranteed minimum price could become a new anchor for rising rare earth prices. Galaxy Securities also noted that the involvement of both the U.S. government and Apple highlights the growing strategic importance of rare earths in high-tech and defense industries.