MP Materials, the largest US rare-earth producer, has entered a $500 million partnership with Apple in a bold move to break China’s dominance on the global magnet supply chain. The deal includes Apple sourcing rare-earth magnets made from recycled materials, with deliveries expected to begin in 2027.
The contract also follows a separate agreement with the US Department of Defense, which will inject hundreds of millions into MP, making it the company’s largest shareholder and effectively turbocharging plans to increase annual magnet output. Its part of a plan to reduce dependance on Asian suppliers and guarantee tech’s industry production.
China currently controls 94% of the global rare-earth magnet manufacturing market, according to data from the International Energy Agency (IEA), which puts American manufacturers ina difficult position since the trade war started.. In April, Ford was forced to halt production at one of its SUV plants due to delays in magnet deliveries, a situation that triggered panic across the sector. Some suppliers reportedly paid $15 per magnet, almost 40 times their normal cost.
More than numbers
MP’s deal with Apple isn’t just about supply, it aims to send a message. Apple CEO Tim Cook said the partnership is “vital for strengthening US supplies of advanced tech materials” and includes plans to build a new recycling line at MP’s California mine. The companies will also collaborate on developing new processing technologies and magnet formulations designed to compete with China’s most advanced products.
MP’s Fort Worth facility will serve as the central hub for this transformation. Fueled by government and private investment, the factory is expected to produce ten times more metric tons of magnets annually. The Pentagon has guaranteed purchases and set a price floor, mitigating price volatility and giving MP the financial certainty to scale operations.
Challenges ahead
However, building a domestic rare-earth supply chain from scratch is a logistical and technological marathon. The U.S. abandoned this industry decades ago, and MP had to rebuild expertise from the ground up. The company spent years prototyping in a small lab dubbed “the Garage,” learning how to refine rare-earth elements and master techniques like grain boundary diffusion (GBD), a critical process that boosts magnet performance and reduces cost.
Critics warn that the US government may be “picking winners” by backing a single company so heavily. Some startups fear being crowded out, which could stifle long-term competitiveness. Others point to structural risks: MP still needs access to heavy rare earths beyond what’s available at its California mine, and China remains the main source.
Yet, the stakes may justify the gamble. Rare earth magnets are essential to everything from electric vehicles and smartphones to missile guidance systems. As global tech and defense sectors seek to reduce reliance on Chinese suppliers, MP’s alignment with both Apple and the Pentagon could mark a turning point.
