In a recent move, technology giant Apple Invests $500mn in MP Materials, which happens to be the Pentagon-backed producer of the only rare earth elements found in the US. This happens to be a part of a larger effort in order to secure the domestic supply chain when it comes to smartphones as well as electric vehicles.
This investment happens to include Apple buying US-made rare earth magnets from the facility in Fort Worth, Texas, of MP Materials.
It is well to be noted that both the companies are going to develop a factory having neodymium magnet production lines that are especially tailored for Apple products. This investment goes on to represent a key component of a comprehensive made-in-the-USA expansion strategy by Apple, which looks forward to significantly boosting its domestic production capabilities while at the same time reducing dependence on overseas supply chains. As Apple Invests $500mn in MP Materials, this commitment over the next four years makes it the company’s largest ever domestic investment plan by encompassing not only manufacturing facilities but, at the same time, supporting infrastructure partnerships along with American suppliers and workforce training programs. It is well to be noted that the tech giant plans to establish new production hubs across multiple states with a focus on critical components like display modules, custom-made chips, and also final product assembly. This domestic push by Apple comes as the global supply chain vulnerabilities, along with geopolitical tensions, prompt major technology firms to rethink their manufacturing footprint.
Interestingly, the MP materials’ shares grew 22.5% to almost $59.5 in early trading in New York on July 15, 2025. Notably, this happens to be the highest intraday price ever since April 2022. The stock of Apple grew a marginal 1% and traded at $211 each.
According to a statement by Tim Cook, who happens to be the chief executive officer of Apple, US rare earth materials are indeed necessary for making advanced technology, and this collaboration is going to help strengthen the supply of such vital materials in the United States.
According to Apple, this partnership is going to create dozens of new manufacturing as well as R&D jobs. This also happens to include a US rare earth materials cycling initiative at the Mountain Pass mine in California of MP Materials, which is going to convert recycled feedstock into materials pertaining to Apple products.
Apparently, the companies are going to co-develop new magnet materials along with innovative processing technologies in order to improve performance. The CEO of MP Materials, James Litinsky, in a separate statement on July 15, said that this collaboration is indeed going to deepen their vertical integration, make the supply chain resilient and more robust, and also reinforce the industrial capacity of the US at a very pivotal stage.
It is well to be noted that in the week ending July 11, 2025, MP Materials landed a multibillion-dollar deal with the US Department of Defense in order to develop the US rare earth materials supply chain. This deal looks forward to reducing dependence on foreign sources, especially China.
Earlier in 2025, after the US went on to impose 145% tariffs on Chinese imports, Beijing went on to retaliate by holding the exports of rare magnets, which are indeed very critical for electronics, EVs, wind turbines, and fighter jets. The trade tensions went on to escalate further when China strategically restricted the exports of rare permanent magnets, which is a move that specifically targeted sectors in which the US lacked self-sufficiency. These magnets were essential for high-performance motors in electric vehicles and precision-guided defense systems and shocks across global manufacturing.
The move went on to disrupt the worldwide supply chains – Ford as well as Suzuki halted some of their production, Elon Musk also cited shortages that affected his robotics operations, and the US government scrambled to go ahead and lock down the non-Chinese sources.
In spite of the global demand, producers who happened to be outside of China, which includes MP Materials in the USÂ as well as Lynas Rare Earths from Australia, have struggled when it comes to profitability because of weak prices along with oversupply.
MP Materials anticipates supplying magnets to General Motors by the end of 2025 and also beginning shipping from its Texas plant in 2027 in order to support hundreds of millions of Apple devices.
How has MP Materials gone on to revive the Mountain Pass?
In the 1970s as well as the 1980s, Mountain Pass happened to be the top producer of rare earths in the world. By early 2000, however, China had already flooded the market by driving prices so low that production in the US became unviable.
Apparently, it was in 2002 that Mountain Pass stopped its operations.
The mine, post that, went on to change hands many times before Mollycorp acquired it by going public with an IPO in 2010. By 2015, Molycorp had already shut the mine down and also filed for bankruptcy post three years, thereby triggering a very heavily fought legal battle in terms of the future of the site.
James Litinsky was among the creditors back then who had already invested $100 million in Mollycorp’s debt. While there were others who had pushed to shut down as well as reclaim the mine, Litinsky went on to see this as an opportunity and bet on the rising demand which was seen in electric vehicles, fueled by Tesla’s rise, and believed that rare earth mining would indeed go on to become critical again.
Notably, Litinsky, at the end, got the hold of Mountain Pass. In 2017, MP Materials was founded by him in order to revive the mine and, at the same time, restart the production. Three years down the line, the company went public, thereby marking the start of the second act. Refining began in 2023, and today Mountain Pass happens to be the second-largest rare earth mine in the world.