Apple to invest $500M in a rare-earth company

Apple announced a $500 million deal with rare earth miner MP Materials on Tuesday to secure magnets for future iPhones and devices.

MP is having a moment
The company’s stock jumped 20% on the news.

Its shares have nearly quadrupled this year and are up 500% since it went public in 2020. Just last week, the Defense Department said it would invest $400 million in the company. MP will also begin supplying General Motors later this year.

Headquartered in Nevada, MP operates the Mountain Pass mine in California—the only active rare earth site in the United States.

Apple’s investment will help fund a recycling center to recover rare earth components from used electronics. 

Rare-earth magnets are essential to everything from smartphones and laptops to EVs and wind turbines. But China currently controls 99% of the global supply, prompting a US push for domestic sourcing.

MP is pouring over $1 billion into building a domestic rare-earth magnet supply chain to challenge China’s control.

However, industry experts say magnets made in America are likely to cost at least 50% more than ones made in China.

Competitors like Vulcan Elements, Noveon, and Germany’s VAC are also racing to launch magnet factories and supply chains in the US.