Apple is investing $500 million into MP Materials, the only U.S.-based producer of rare earth magnets, in a deal that will support future iPhone, Mac, and wearable production.
The partnership includes a new manufacturing facility in Fort Worth, Texas, where MP will make neodymium magnets designed specifically for Apple products.
The company is also working with Apple to build a recycling line in California. The goal is to recover rare earth elements from old devices and feed them back into the production chain.
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That could help Apple cut costs, reduce dependence on overseas sources, and maintain control over core components used across its product line.
Magnets are critical to Apple’s hardware. They’re used in speakers, haptics, MagSafe, and accessories. Almost all Apple products contain them.
Apple first started using recycled rare earth materials in the iPhone 11. Since then, it’s expanded that effort across most of its lineup.
Apple already designs its chips and builds many of its components through custom suppliers.
This move adds magnets to that list. It’s a quiet but important shift in how the company manages risk and long-term supply.
Rare earth materials have often been subject to export restrictions, especially from China. By localizing production, Apple gives itself a safety net and a layer of independence.
The deal also helps Apple position itself as a U.S. manufacturing leader at a time when political pressure to bring jobs and supply chains home is rising.
MP Materials will expand its workforce and train new technical employees, many of whom will work on Apple-specific lines.
Apple has said it plans to spend more than $500 billion in the U.S. over the next four years. This deal is a small but meaningful part of that strategy.
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The first magnets from the new Texas plant are expected to ship globally once the facility comes online.
For Apple, the payoff is long-term. A steady domestic supply of rare earth materials gives the company tighter control over its hardware roadmap and lowers the risk of future disruption.
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