Apple ink $500 million deal with the only American rare earth miner in the trade war

Apple is working with the only MP material in the U.S. to build a $500 million factory in Texas, which will recycle and produce rare earth magnets, the key components used in everything from iPhones to fighters. The move comes as the United States hopes to bring more technology supply chains home and reduce its dependence on China, which currently dominates. These minerals have been making headlines lately, not only because of their role in cutting-edge technologies, but also the flashpoint of rising trade tensions between Washington and Beijing.

The new facility will adopt a Neododmium Magnet production line that targets Apple’s specific hardware needs. It is part of a broader plan for Apple to invest $500 billion in U.S. manufacturing over four years. MP materials are expected to start shipping magnets to Apple as early as 2027.

“Rare earth materials are crucial to manufacturing advanced technology, and this partnership will help strengthen the supply of these important materials in the United States,” Apple CEO Tim Cook said in a press release.

Rare earth magnets are crucial to a wide range of products, from iPhones and electric vehicles to fighter jets and missile guidance systems. However, the United States has relied on China in history to carry out almost all rare earth processing. Although these minerals are not geologically rare, their treatment is both expensive and complex, and China currently controls 92% of global output.

Apple’s announcement comes after a major U.S. Department of Defense move that last week made a $400 million investment in MP materials as part of a landmark public-private partnership. The Pentagon purchased new convertible preferred shares, as well as a 10-year arrest warrant for $30.03 per share. If exercised comprehensively, the government could hold about 15% of the company—more than major shareholders like Blackrock or co-founder James Litinsky.

The Defense Ministry’s funds will be used to build another magnet factory that will produce new “10 times” magnets. The Pentagon has committed to buying 100% of that production over the next decade. The facility is expected to open in 2028 and will increase the annual magnet capacity of MP materials to 10,000 metric tons to meet a large amount of U.S. demand.

Meanwhile, Apple has begun to reduce its reliance on newly mined rare earths by prioritizing recycling materials. By 2023, the company reports that about two-thirds of aluminum, three-quarters of rare earth elements, and 95% of the tungsten used in its products comes from recycling sources. That same year, Apple also promised to use only recycled cobalt in its batteries.

Apple and the Pentagon’s moves are part of the broader U.S. push toward nearshore rare earth supply chains. Earlier this year, President Trump proposed annexation of Greenland, a Danish autonomous territory that contains an estimated $4.4 trillion in rare earth reserves. Vice President JD Vance unexpectedly visited the program.

Meanwhile, trade tensions between Washington and Beijing continue to rise, underscoring the strategic importance of rare earth independence. In April, China’s export restrictions on rare earth minerals lifted controls on May 11 as part of a 90-day trade armistice, but the incident underscores the risks of continuing reliance on China on such key materials.