Technology giant Apple Inc. (NASDAQ: AAPL) has secured a $500 million agreement with MP Materials (NYSE: MP), America’s sole integrated rare earth producer and a Pentagon-supported company. Announced Tuesday, this strategic partnership advances Apple’s four-year $500 billion U.S. investment initiative while strengthening domestic supply chains for smartphones and electric vehicles.
The deal closely follows MP Materials’ billion-dollar agreement with the U.S. Department of Defense (DoD) last week, which positions the DoD as MP’s largest shareholder with a potential 15% stake—surpassing Chinese shareholder Shenghe Resources’ 8% holding. Under the DoD pact, the Pentagon guarantees minimum rare earth purchase prices and will support construction of MP’s new magnet manufacturing facility, dubbed the “10X Factory.”
MP Materials’ stock surged 22.5% to $59.5 in early New York trading Tuesday, reaching its highest intraday level since April 2022. Apple shares rose modestly by 1% to $211.
As the only U.S. company with comprehensive rare earth capabilities spanning mining to magnet production, MP operates the world’s second-largest rare earth mine at Mountain Pass. The site commenced mining operations in 2017 and initiated refining in 2023, producing 45,455 metric tons of rare earth concentrate oxides and 1,294 tons of neodymium-praseodymium oxide last year while generating $61 million in revenue.
These investments unfold against heightened U.S.-China trade tensions. Earlier this year, China suspended exports of rare earth magnets—critical components for electronics, electric vehicles, wind turbines, and fighter jets—in retaliation for U.S. tariff increases. The move triggered global supply chain disruptions: automakers including Ford and Suzuki halted production, Elon Musk reported shortages impacting robotics operations, and governments worldwide accelerated efforts to secure non-Chinese sources.
Under the Apple agreement:
Apple CEO Tim Cook emphasized in a statement: Rare earth materials are essential for advanced technology. This partnership strengthens U.S. supply of vital materials. MP Materials CEO James Litinsky added that the collaboration deepens vertical integration at a pivotal moment, enhancing supply chain resilience and U.S. industrial capacity.
Despite soaring global demand, non-Chinese producers including MP Materials and Australia’s Lynas Rare Earths (ASX: LYC) continue facing profitability challenges due to depressed pricing and market oversupply.
