• Apple invests $500 million in MP Materials for rare earth magnets.
• The deal aims to strengthen the U.S. supply chain amid trade tensions with China.
• MP Materials plans to build a factory in Texas to produce neodymium magnets.
• Apple's investment is part of a $500 billion commitment to U.S. manufacturing.
• MP's stock surged significantly following the announcement of the deal.

Apple has announced a significant investment of $500 million in MP Materials, a U.S. producer of rare earth minerals. This move is part of Apple's strategy to localize its mineral supply chain and reduce reliance on China, especially following geopolitical tensions affecting rare earth imports. The deal includes establishing a production facility in Texas dedicated to manufacturing neodymium magnets, vital components for various electronic devices, according to Reuters and Business Insider.

The collaboration with MP Materials aims to not only produce new magnets but also to enhance recycling processes for rare earth materials from used electronics. Apple's CEO, Tim Cook, highlighted that “rare earth materials are essential for making advanced technology,” and expressed that this partnership will significantly bolster the supply of these critical materials in the U.S., according to South China Morning Post and Reuters.

The financial backing from Apple follows MP Materials' recent multibillion-dollar deal with the U.S. Department of Defense which aims to stabilize the prices of rare earth metals in response to China's market control. The stock for MP Materials soared by over 25% on the announcement, reflecting strong investor confidence in the partnership and its implications for U.S. manufacturing, as reported by Business Insider and South China Morning Post.

With production set to begin in 2027, the partnership signifies a critical step towards enhancing supply chain resilience and advancing U.S. industrial capability amid ongoing global supply challenges. MP Materials plans to use recycled rare earth materials to support Apple products, further increasing sustainability in production practices, highlighting a shared commitment to environmental responsibility, according to Reuters and Business Insider.