Apple inks $500m deal for rare earth magnets with US mining company

Apple has secured a £500m agreement with MP Materials, a US-based mining firm, for the supply of rare earth magnets, a critical component in electronics manufacturing. The deal comes as China, currently the leading global supplier of rare earth magnets, imposed restrictions on exports earlier this year amidst escalating trade tensions.

To mitigate the risk of supply chain disruptions, Apple has opted to partner with MP Materials, which operates the only rare earth mine in the United States. The partnership also aligns with Apple’s ongoing commitment to sustainability, as the materials will be processed from recycled sources. Production will be centred at MP Materials’ facilities in Fort Worth, Texas and Mountain Pass, California, with shipments expected to begin in 2027.

In a strategic move to ensure uninterrupted access to these vital materials, Apple will prepay MP Materials £200m as part of the agreement. The use of recycled materials support’s Apple’s long-term goal of reducing reliance on mining while achieving a stable and eco-friendly supply of rare earth components. Tim Cook, Apple’s CEO, highlighted the significance of the partnership in strengthening the domestic supply of these metals, securing vital resources for the company’s technology platforms.

The timing of the deal is critical, as the global tech sector remains vulnerable to geopolitical uncertainties. Earlier this year, China’s curbs on the export of rare earths highlighted the fragility of existing supply chains. Although a temporary US-China agreement eased some trade restrictions, the broader push for diversified sourcing continues to dominate corporate strategies.

The agreement with MP Materials forms part of Apple’s larger £500bn investment commitment in US-based production and technologies. The company is leveraging partnerships like this not only to stabilise its supply chain but also to position itself favourably with policymakers, addressing past criticisms about overseas-based manufacturing.

With the rare earth magnets destined for hundreds of millions of Apple devices, the deal underscores the importance of securing domestic supplies of critical minerals, a move applauded by analysts as both strategic and forward-thinking for the world’s largest tech company.