Apple announced it will invest up to $5 million over the next few years to source rare earth magnets from MP Materials, a US manufacturer. The investment will also include collaboration on technology development and the development of recycling facilities. This initiative not only strengthens Apple's own supply chain but also holds strategic significance for US independence in critical mineral resources.
Currently, rare earth magnet materials are used in many products including iPhones, MacBooks, and Apple Pencil. Apple has already invested in the use of recycled materials in the past. The announcement of a partnership with MP Materials means extending the production line from raw material mining to manufacturing.
MP Materials is the only company in the United States with complete rare earth refining and processing capabilities. The two companies will collaborate to expand their processing facilities in Texas, creating a manufacturing line specifically designed for Apple. This collaboration is expected to create dozens of high-level manufacturing and R&D positions. These American-made magnets will be supplied to Apple products worldwide, meeting growing market demand.
Apple's 2019 iPhone 11 features a Taptic Engine designed with recycled rare earth elements. The US Department of Defense is now the largest shareholder in MP Materials, demonstrating the strategic value of rare earth supplies not only in civilian technology but also in the defense industry.
“American innovation drives everything at Apple, and we’re proud to further strengthen our commitment to the U.S. economy,” said Apple CEO Tim Cook. “Rare earth materials are critical to cutting-edge technology, and this collaboration will help ensure a stable local supply of these materials.”
In addition to strengthening the supply chain, Apple and MP Materials will also jointly build a rare earth recycling facility in California and develop new magnet materials and innovative processing technologies to improve magnet performance and process efficiency, further realizing the vision of environmental protection and resource recycling.
This cooperation is also part of Apple's established investment plan in the United States. As early as 2021, Apple pledged to invest $4300 billion in the United States over the next four years, and now it has further expanded to$5000 billionAlthough the actual amount did not change much due to inflation, Apple emphasized that its long-term determination to support American manufacturing remains clear.
