Apple Secures Rare Earth Magnets with $500 Million Deal to Reduce China Dependency

Apple has signed a $500 million, four-year agreement with MP Materials to secure a steady supply of rare earth magnets, marking a significant move to reduce reliance on China and stabilize its supply chain. The deal ensures Apple access to magnets independent of China, the dominant global supplier, and safeguards against potential export restrictions.
MP Materials, operator of the only U.S. rare earth mine, recently partnered with the Department of Defense, making the federal government its largest shareholder. Under the agreement, Apple will prepay $200 million for future magnet supplies from MP’s Texas facility, set to begin operations in 2027. The deal also includes plans to build a recycling facility in California, recovering materials from discarded electronics for reuse in Apple products.
Apple’s investment strengthens its long-term supply security, particularly for products like iPhones, Apple Watches, and AirPods, which heavily rely on rare earth magnets. The company has historically sourced magnets from Asia but now aims to establish a sustainable domestic supply chain.
The partnership reflects broader U.S. efforts to reduce dependency on China for critical minerals, a shift accelerated by China’s export restrictions earlier this year. MP Materials’ agreement with the U.S. government includes a price floor for rare earth elements, protecting against market manipulation and encouraging domestic production.
Apple’s deal with MP Materials underscores the growing trend of U.S. corporations diversifying their mineral sourcing to mitigate supply chain risks and enhance national security. This strategic move positions Apple to build its products without fear of rare earth supply disruptions, aligning with U.S. goals to achieve mineral independence.

Published: 7/24/2025