Apple invests $500 million in MP Materials to produce rare earth magnets in Texas and California, strengthening U.S. supply chains and boosting sustainable manufacturing.
In a significant boost to American manufacturing, Apple Inc. has announced a $500 million investment in MP Materials, a leading U.S. rare earths producer. The strategic partnership aims to secure a domestic supply of rare earth magnets—key components used in iPhones, iPads, and MacBooks—while reducing dependence on foreign suppliers and reinforcing Apple’s commitment to U.S. industry.
Apple Doubles Down on U.S. Manufacturing
The investment is part of Apple’s broader $500 billion, four-year plan to expand its operations across the United States. The deal will specifically support the production of rare earth magnets at MP Materials’ Fort Worth facility in Texas, with dedicated manufacturing lines tailored to Apple’s product requirements. Production is slated to begin in 2027, with magnets expected to power hundreds of millions of Apple devices.
Apple’s initiative doesn’t stop there. The tech giant will also back the development of a rare earth recycling facility at Mountain Pass, California, where MP Materials operates the only rare earth mining and processing site in North America. The facility will focus on recovering rare earth elements from end-of-life devices—part of Apple’s long-standing push for environmental sustainability.
Why Rare Earth Magnets Matter
Rare earth magnets are critical to modern electronics, enabling key functions such as speakers, vibration feedback, and camera operation. However, over 80% of global rare earth processing is currently concentrated in China, creating vulnerabilities in global supply chains. Apple’s decision to localize production is a calculated response to these risks—especially at a time when geopolitical tensions and trade restrictions continue to challenge international commerce.
This move aligns with the current U.S. administration’s emphasis on reshoring essential manufacturing. Apple’s investment positions it as a leader in securing critical mineral independence and bolstering national economic resilience.
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Economic and Environmental Impact
The partnership is expected to generate hundreds of high-skill jobs across Texas and California. The Fort Worth expansion will scale up MP Materials’ manufacturing capabilities, while the Mountain Pass facility will implement cutting-edge recycling technologies to promote a circular economy.
“This investment is a game-changer for the U.S. rare earth industry,” said a spokesperson for MP Materials. “Our collaboration with Apple not only strengthens domestic production but also advances sustainable technologies for future generations.”
These efforts support Apple’s environmental commitments, including reducing carbon emissions, minimizing electronic waste, and investing in clean energy infrastructure.
A Strategic Shift with Broader Implications
Industry analysts have lauded Apple’s proactive strategy. The move is seen as a model for other tech companies to follow in strengthening supply chain resilience and de-risking from overseas dependencies. Posts on X (formerly Twitter) and coverage in outlets like Reuters and CNN Business have described the partnership as a “smart and timely investment.”
The deal could also reshape the global rare earth market, challenging China’s longstanding dominance and encouraging further domestic investments in rare earths and clean-tech manufacturing.
The Road Ahead
As Apple and MP Materials prepare for magnet production to go live in 2027, the partnership marks a major milestone in the evolution of American tech manufacturing. For Apple, it ensures greater control over the components that power its devices. For the U.S. economy, it represents a step forward in building a more secure, sustainable, and innovation-driven industrial base.