Apple has announced plans to purchase $500 million worth of rare earth magnets made in the United States over the next several years, marking a significant step in its push to localise its supply chain and reduce dependence on China.
Apple has announced plans to purchase $500 million worth of rare earth magnets made in the United States over the next several years.
The company will source the magnets – essential components used in iPhones, iPads, and MacBooks – from MP Materials, a Nevada-based firm backed by the U.S. Department of Defense.
These magnets are used in devices’ speakers, haptic systems, and internal fans.
Apple CEO Tim Cook said in a statement: “American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the U.S. economy.
“Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States.”
MP Materials will produce the magnets using rare earths mined and refined in California, with final magnet production taking place at a new facility in Fort Worth, Texas.
The company says this will be the first U.S. magnet manufacturing site in over two decades.
The deal is part of Apple’s wider strategy to invest in domestic manufacturing and clean energy.
In 2021, Apple committed to spending $430 billion in the U.S. over five years, including investments in chip production, 5G innovation, and green energy projects.
The move also comes amid increasing geopolitical tension and global concerns over China’s dominance in rare earth processing, with the country currently accounting for the vast majority of the world’s rare earth magnet production.
Ryan Corbett, CFO of MP Materials, said the deal would help “restore the full rare earth magnetics supply chain to the United States,” calling it a “historic moment” for domestic manufacturing.
The magnets supplied under the deal are expected to start being used in Apple products beginning in 2025.
Apple to buy 500M USD worth of US-made rare earth magnets
