Apple and MP Materials Partner to Build $500 Million Texas Factory for Rare Earth Magnets
Tech Giant Secures Domestic Supply Chain in Historic Deal with Pentagon-Backed Producer
Apple Inc. announced on Tuesday a groundbreaking $500 million investment in MP Materials Corp., the United States' only rare earth mining company, to establish a state-of-the-art manufacturing facility in Fort Worth, Texas. This facility will produce neodymium magnets specifically designed for Apple products, thereby reducing American dependence on Chinese rare earth materials.
The partnership, revealed on July 15, 2025, represents the first major supply agreement for MP Materials' magnet production capabilities and marks a significant victory for the Trump administration's efforts to secure domestic supply chains for critical materials. The collaboration will create a new recycling facility in California and establish specialized manufacturing lines in Texas, with production expected to begin in 2027 and eventually support "hundreds of millions of Apple devices," according to MP Materials.
The investment is part of Apple's broader commitment to spend more than $500 billion in the United States over the next four years, aligning with the Trump administration's efforts to reduce the country's reliance on China for critical technology components. MP Materials shares surged as much as 22.5% to $59.50 in early trading Tuesday, reaching their highest intraday price since April 2022.
Strategic Partnership Addresses National Security Concerns
The Apple-MP Materials alliance comes at a crucial time when rare earth materials have become a flashpoint in U.S.-China trade relations. China currently dominates the global rare earth market, controlling approximately 60% of production and up to 90% of processing capabilities, according to Market Screener.
The timing of the announcement is particularly significant, as it follows China's decision to halt rare earth exports in March 2025 amid escalating trade tensions with the Trump administration. This export ban demonstrated China's ability to weaponize its control over these critical materials, which are essential for manufacturing smartphones, electric vehicles, wind turbines, and military equipment.
"Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States," Apple CEO Tim Cook stated in announcing the deal.
The partnership builds upon MP Materials' recent Pentagon backing, with the company securing a multibillion-dollar agreement with the U.S. Department of Defense just last week to boost rare earth magnet production. This dual support from both the military and the private sector underscores the strategic importance of establishing domestic rare earth capabilities.
Fort Worth Factory to Pioneer Specialized Manufacturing
The centerpiece of the Apple-MP Materials collaboration is the expansion of MP Materials' Independence facility in Fort Worth, Texas, which will house new neodymium magnet manufacturing lines specifically tailored for Apple products. The state-of-the-art factory represents a significant technological advancement in domestic rare earth processing capabilities.
According to Apple's official announcement, the Texas facility will feature "a series of neodymium magnet manufacturing lines specifically designed for Apple products". The new equipment and technical capacity will allow MP Materials to significantly boost its overall production, with American-made magnets shipped across the country and around the world to meet increasing global demand.
The Fort Worth location was strategically chosen for its proximity to existing infrastructure and skilled workforce. The facility will create dozens of new jobs in advanced manufacturing and research and development, with both companies providing extensive training to develop a domestic workforce skilled in magnet manufacturing techniques.
Production Timeline and Capacity
MP Materials expects to begin producing magnets for Apple products in 2027, following the completion of the specialized manufacturing lines. The company already has experience in magnet production, with plans to start manufacturing magnets for General Motors' electric vehicles later this year, according to TechXplore.
The Texas facility will utilize recycled rare earth materials processed at MP Materials' Mountain Pass, California mining complex, creating a closed-loop system that maximizes resource efficiency. This approach aligns with Apple's commitment to environmental sustainability and reduced resource consumption.
Revolutionary Recycling Initiative Takes Shape
Beyond the Texas manufacturing facility, Apple and MP Materials will establish a cutting-edge rare earth recycling line at the Mountain Pass, California site. This facility represents a first-of-its-kind operation designed to process recycled rare earth feedstock from used electronics and post-industrial scrap for use in new Apple products.
The recycling initiative builds on nearly five years of collaboration between Apple and MP Materials in developing advanced recycling technology that enables recycled rare earth magnets to be processed into materials meeting Apple's exacting performance and design standards. This technological breakthrough addresses both environmental concerns and supply chain security.
"American innovation drives everything we do at Apple, and we're proud to deepen our investment in the U.S. economy," Cook said, emphasizing the company's commitment to domestic innovation.
Apple pioneered the use of recycled rare earth elements in consumer electronics, first introducing them in the Taptic Engine of iPhone 11 in 2019. Today, nearly all magnets across Apple devices are made with 100% recycled rare earth elements, according to the company's announcement.
Environmental Impact and Sustainability
The recycling facility will enable MP Materials to capture and reprocess rare earth materials from various sources, including discarded electronics and manufacturing waste. This approach significantly reduces the environmental impact of rare earth mining while creating a more sustainable supply chain.
The collaboration will help secure the domestic supply of critical materials while strengthening the U.S. rare earth industry's capabilities to capture more raw material. The innovative recycling methods represent a significant advancement in environmental progress for the rare earth sector.
Market Response and Financial Implications
The announcement triggered significant market activity, with MP Materials shares experiencing their largest single-day gain in nearly three years. The stock surged as much as 18% to its highest intraday price since April 2022, reflecting investor confidence in the partnership's potential.
Apple's stock also responded positively, rising as much as 1% following the announcement. The relatively modest gain for Apple reflects the deal's proportional impact on the tech giant's overall operations, while the dramatic surge in MP Materials shares demonstrates the transformative nature of the partnership for the smaller company.
The financial structure of the deal includes Apple's commitment to purchase U.S.-made rare earth magnets from MP Materials' Texas facility, providing guaranteed revenue for the mining company. This arrangement offers MP Materials stable income while securing Apple's supply chain for critical components.
Industry-Wide Implications
The Apple-MP Materials partnership is expected to catalyze broader investment in domestic rare earth capabilities. According to Steve Christensen, executive director of the Responsible Battery Coalition, the new investments in MP Materials "might be part of a larger trend of increasing domestic production and processing of these key elements".
The deal also demonstrates the private sector's willingness to invest in supply chain security, potentially encouraging other technology companies to pursue similar domestic sourcing arrangements. This trend could accelerate the development of American rare earth capabilities beyond what government funding alone could achieve.
Pentagon Partnership Strengthens Strategic Foundation
The Apple deal gains additional significance when viewed alongside MP Materials' recent Pentagon partnership, which provides a 10-year guarantee for minimum prices on key rare earth elements neodymium and praseodymium. This arrangement ensures stable revenue for MP Materials while protecting the company from potential price manipulation by Chinese producers.
According to TechXplore, the Pentagon's price guarantee "will guarantee stable revenue for MP Minerals and protect it from potential price cuts by Chinese producers that are subsidized by their government". This protection mechanism addresses one of the primary risks facing domestic rare earth producers competing against state-subsidized Chinese operations.
The dual support from both military and commercial customers creates a robust foundation for MP Materials' expansion plans. The Pentagon's $400 million investment, combined with Apple's $500 million commitment, provides nearly $ 900 million in backing for domestic rare earth capabilities.
National Security Dimensions
The partnership addresses critical national security concerns about American dependence on Chinese rare earth materials. These elements are essential for military applications, including fighter aircraft, guided missiles, and advanced radar systems. Establishing domestic production capabilities reduces vulnerabilities in defense supply chains.
The Trump administration has made rare earth mining and supply chain security top national security priorities. A senior White House official described the Apple-MP Materials deal as "a huge win for the president, who has the foresight to make this issue a priority," according to Fox News.
Technological Innovation and Research Development
The collaboration extends beyond manufacturing to encompass joint research and development efforts aimed at enhancing magnet performance and developing innovative materials. Apple and MP Materials will work together to enhance magnet production techniques and advance end-of-life recovery capabilities.
The partnership will also focus on developing innovative processing technologies that could improve the efficiency and environmental impact of rare earth extraction and processing. These technological advances could benefit the broader rare earth industry and strengthen American competitiveness in critical materials.
The companies plan to continue innovating together to improve magnet production while advancing recycling capabilities. This ongoing collaboration ensures that the partnership will evolve in tandem with technological advancements and shifting market conditions.
Research and Development Impact
The creation of new manufacturing and R&D jobs represents a significant investment in American technological capabilities. The extensive training programs planned by both companies will build an entirely new pool of U.S. talent and expertise in magnet manufacturing, creating long-term benefits for the domestic rare earth industry.
The research component of the partnership could lead to breakthrough technologies that improve the performance and reduce the cost of rare earth magnets. These innovations could make American-produced magnets more competitive globally while reducing dependence on foreign suppliers.
Supply Chain Security and Global Implications
The Apple-MP Materials partnership represents a fundamental shift in how major technology companies approach supply chain security. By investing directly in domestic production capabilities, Apple is reducing its vulnerability to geopolitical tensions and supply disruptions that have plagued global rare earth markets.
The deal also sends a strong signal to other technology companies about the importance of diversifying their supply chains. As China continues to use rare earth exports as a trade weapon, American companies are increasingly recognizing the need for domestic alternatives.
The global implications extend beyond the United States, as the partnership could inspire similar initiatives in other countries that seek to reduce their dependence on Chinese rare earth materials. European and Asian nations are likely monitoring the success of this model for potential replication.
Economic and Strategic Benefits
The partnership creates multiple economic benefits, including job creation in advanced manufacturing, increased domestic production capacity, and reduced trade deficits in critical materials. The recycling component also addresses environmental concerns while creating economic value from waste materials.
The strategic benefits include enhanced supply chain security, reduced vulnerability to geopolitical tensions, and strengthened domestic technological capabilities. These advantages extend beyond Apple to benefit the broader American economy and national security.
Future Expansion and Long-term Vision
The Apple-MP Materials partnership lays the groundwork for potential future expansion in domestic rare earth capabilities. The success of this initiative could lead to additional investments in mining, processing, and manufacturing facilities across the United States.
The companies have indicated their intention to continue collaborating on technological improvements and capacity expansion. This ongoing partnership approach ensures that the relationship will evolve in response to changing market conditions and technological developments.
The long-term vision includes establishing the United States as a major player in the global rare earth market, capable of competing with Chinese producers while maintaining higher environmental and labor standards. This transformation could take years but represents a fundamental shift in global rare earth dynamics.
Industry Transformation Potential
The partnership could catalyze broader transformation in the rare earth industry, encouraging additional private investment in domestic capabilities. Other technology companies may follow Apple's lead in securing domestic supply chains, creating a multiplier effect for American rare earth production.
The collaboration also demonstrates the potential for public-private partnerships in addressing strategic material shortages. The combination of Pentagon backing and corporate investment provides a model for future initiatives in other critical materials sectors.
A New Era for American Manufacturing
The Apple-MP Materials partnership represents more than a business deal—it embodies a strategic shift toward domestic supply chain security and technological independence. By investing $500 million in American rare earth production capabilities, Apple is helping to establish a foundation for reduced dependence on Chinese materials while supporting domestic job creation and technological innovation.
The collaboration addresses immediate supply chain vulnerabilities while building long-term capabilities that will benefit American manufacturing for decades to come. The combination of advanced recycling technology, specialized manufacturing lines, and ongoing research and development creates a comprehensive approach to securing the rare earth supply chain.
As production begins in 2027, the partnership will serve as a test case for the viability of domestic rare earth production in competition with Chinese suppliers. The success of this initiative could inspire similar collaborations across the technology sector, potentially transforming global rare earth markets and strengthening American technological independence in an increasingly competitive global economy.