Image Credit: Reuters

Apple in $500M Rare Earth Magnet Deal to Boost U.S. Supply Chain

Apple has struck a $500 million agreement with MP Materials to secure a long-term supply of rare earth magnets — a strategic move aimed at bolstering domestic production of critical components used in iPhones, MacBooks, and other devices. The deal represents a significant step in reshoring Apple's supply chain and reducing dependence on foreign sources amid rising geopolitical tensions.

Strengthening Domestic Resilience in Key Components

The multiyear deal will see MP Materials, a leading U.S.-based rare earth miner and processor, supply Apple with neodymium magnets and related components critical for the vibration and audio functions in Apple’s devices. These magnets are essential for manufacturing electric motors, smartphones, and other advanced electronics. Investing.com

The agreement underscores Apple’s broader commitment to building a more resilient, U.S.-based supply chain. It also reflects growing pressure on American tech companies to secure critical materials domestically, especially as the U.S. government pushes for reduced reliance on Chinese rare earth suppliers — who currently dominate global production.

MP Materials, which operates the Mountain Pass mine in California, will process and manufacture the magnets entirely within the United States, aligning with Apple’s sustainability and regional sourcing goals. The deal will also support domestic job creation and clean energy goals tied to electric vehicle and renewable tech growth. Asharq Al Aw

Strategic Alignment With U.S. Policy and ESG Goals

The timing of this agreement aligns with Washington’s push to strengthen American industrial capacity in strategic sectors. By partnering with MP Materials, Apple not only secures a critical supply stream but also reinforces its environmental, social, and governance (ESG) credentials through domestic sourcing and reduced carbon emissions associated with overseas transport.

This move may also help Apple mitigate potential supply chain disruptions, given ongoing global instability, trade disputes, and rising regulatory scrutiny.

 

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