Apple Signs $500 Million Deal with MP Materials for Rare Earth Magnets

Apple Inc. has signed a $500 million supply agreement with MP Materials, a Pentagon-backed U.S. company, to secure rare earth magnets amid tightening export controls from China.

The deal makes Apple one of the first tech companies to ensure a China-free supply chain for these critical components, which are used in everything from iPhones to MacBooks.

Announced Tuesday, the agreement ensures Apple will receive a steady flow of rare earth magnets sourced and produced in the U.S., including magnets made from recycled materials, aligning with Apple’s goal to phase out reliance on mining.

The announcement comes shortly after the U.S. Department of Defence became MP’s largest shareholder, offering multibillion-dollar financial backing to the company. MP Materials’ shares surged 21% following the announcement, while Apple’s stock saw a modest gain.

Experts say the deal reflects growing concerns among tech companies over supply chain security and a shift towards reliable, local production in key industries like electronics and defence.