Apple is teaming up with MP Supplies, the one uncommon earth miner within the U.S., to construct a $500 million plant in Texas that may recycle and manufacture uncommon earth magnets—key parts utilized in all the things from iPhones to fighter jets. The transfer comes because the U.S. appears to be like to convey extra of its tech provide chain again residence and scale back its reliance on China, which presently dominates international uncommon earth processing. These minerals have been making headlines recently, not only for their function in cutting-edge tech, but in addition as flashpoints in rising commerce tensions between Washington and Beijing.
The brand new facility will function neodymium magnet manufacturing strains tailor-made to Apple’s particular {hardware} wants. It’s a part of Apple’s broader plan to take a position $500 billion in U.S. manufacturing over 4 years. MP Supplies expects to start transport magnets to Apple as early as 2027.
“Uncommon earth supplies are important for making superior know-how, and this partnership will assist strengthen the provision of those important supplies right here in the USA,” stated Apple CEO Tim Prepare dinner in a press launch.
Uncommon earth magnets are important for a variety of merchandise, from iPhones and electrical automobiles to fighter jets and missile steerage techniques. But the U.S. has traditionally relied on China for practically all uncommon earth processing. Whereas these minerals should not uncommon geologically, they’re costly and complicated to course of, and China presently controls about 92 % of world output.
Apple’s announcement follows a serious transfer by the U.S. Division of Protection, which final week made a $400 million funding in MP Supplies as a part of a landmark public-private partnership. The Pentagon bought a brand new class of convertible most well-liked shares together with a 10-year warrant at $30.03 per share. If absolutely exercised, the federal government may maintain a roughly 15 % stake within the firm—greater than main shareholders like BlackRock or co-founder James Litinsky.
Funds from the Protection Division will go towards constructing one other magnet plant, which can produce a brand new class of “10X” magnets. The Pentagon has dedicated to buying one hundred pc of that output over the subsequent decade. That facility is predicted to open in 2028 and can enhance MP Supplies’ annual magnet capability to 10,000 metric tons—sufficient to fulfill a major share of U.S. demand.
Apple, in the meantime, has already begun decreasing its dependence on newly mined uncommon earths by prioritizing recycled supplies. By 2023, the corporate reported that about two-thirds of the aluminum, three-fourths of the uncommon earth components and 95 % of the tungsten utilized in its merchandise got here from recycled sources. That very same yr, Apple additionally pledged to make use of solely recycled cobalt in its batteries going ahead.
The strikes by Apple and the Pentagon are a part of a broader U.S. push to nearshore uncommon earth provide chains. Earlier this yr, President Trump proposed annexing Greenland, an autonomous Danish territory estimated to comprise $4.4 trillion value of uncommon earth reserves. Vice President JD Vance made a shock go to in assist of the plan.
In the meantime, rising commerce tensions between Washington and Beijing have underscored the strategic significance of uncommon earth independence. In April, China imposed export restrictions on uncommon earth minerals certain for the U.S. The controls had been lifted on Might 11 as a part of a 90-day commerce truce, however the episode highlighted the dangers of continued reliance on China for such important supplies.
