Apple announced on Tuesday that it will invest $500 million in MP Materials, a rare earth mining and processing company, as part of its effort to secure a domestic supply of critical minerals used in its products and reduce reliance on China.
The move aligns with Apple’s broader strategy to shift more iPhone production and component sourcing to the United States, in step with Trump administration policies aimed at boosting US manufacturing and cutting dependence on Chinese imports.
Rare earth elements—17 specialized metals used in high-performance magnets—are vital for powering devices and electric motors.
China, which currently dominates global rare earth supply, halted exports in March amid a trade dispute with President Donald Trump. While tensions have slightly eased, the situation has underscored the urgency for alternative sources.
Shares of Las Vegas-based MP Materials surged 10% to $52.37 in premarket trading following the announcement.
Last week, MP signed a multibillion-dollar agreement with the US Department of Defense to ramp up rare earth magnet production, helping to diversify global supply chains and reduce China’s market dominance.
Apple said its investment in MP is part of its broader $500 billion commitment to US operations. Under the agreement, Apple will purchase rare earth magnets produced at MP’s Texas facility—marking MP’s first commercial magnet supply deal since receiving government support.
MP currently mines and processes rare earth materials at its Mountain Pass site in California and aims to begin commercial magnet production in Texas by year-end.
In addition to the Texas facility, Apple and MP plan to build a new magnet manufacturing plant in the state, as well as a recycling facility near Mountain Pass.
