MP Materials and Apple Announce $500 Million Partnership to Produce Recycled Rare Earth Magnets in the United States
Summary
MP Materials and Apple have announced a $500 million, long-term partnership for MP Materials to supply Apple with rare earth magnets. These magnets will be manufactured in the U.S. from 100% recycled materials at MP's Fort Worth facility, using feedstock processed at its California site. This collaboration strengthens domestic supply chains, aligns with Apple's sustainability goals, and validates MP Materials' integrated rare earth strategy. It signifies a shift towards sustainable sourcing in the critical rare earth market, offering positive implications for both companies and the broader industry.
MP Materials and Apple Forge $500 Million Partnership for U.S. Recycled Rare Earth Magnets
LAS VEGAS – July 15, 2025 – MP Materials (NYSE: MP) today announced a landmark, long-term agreement valued at $500 million to supply Apple (NASDAQ: AAPL) with rare earth magnets manufactured entirely in the United States from 100 percent recycled materials. This strategic partnership underscores a significant step towards establishing a robust, sustainable, and domestically sourced supply chain for critical rare earth elements, reducing reliance on foreign sources and promoting circular economy principles.
Under the terms of the definitive agreement, MP Materials will be responsible for supplying Apple with high-performance rare earth magnets produced at its state-of-the-art facility in Fort Worth, Texas, known as Independence. This facility is specifically designed to utilize recycled rare earth feedstock, which will be processed at MP Materials' Mountain Pass site in California. The feedstock itself will be meticulously sourced from both post-industrial waste streams and end-of-life products, ensuring a truly circular and environmentally responsible production process.
This collaboration is a testament to both companies' commitment to environmental stewardship and supply chain resilience. For Apple, this partnership aligns perfectly with its ambitious environmental goals, including its aim to achieve carbon neutrality across its entire supply chain by 2030. Sourcing recycled rare earth magnets domestically not only reduces the carbon footprint associated with transportation but also mitigates the environmental impact often linked with traditional rare earth mining.
For MP Materials, this agreement represents a substantial validation of its vertically integrated rare earth supply chain strategy. The company has been investing heavily in its capabilities to process, refine, and manufacture rare earth products within the United States, from mining at Mountain Pass to magnet production in Texas. This partnership with a global technology leader like Apple provides a stable, long-term revenue stream and solidifies MP Materials' position as a key player in the domestic rare earth industry.
Market Context and Implications
The rare earth market has historically been dominated by a few key players, leading to supply chain vulnerabilities and geopolitical concerns. This partnership between MP Materials and Apple is a significant development that could reshape the global rare earth landscape. It highlights a growing trend among major corporations to de-risk their supply chains by investing in domestic production and embracing recycled materials. The focus on 100% recycled content is particularly noteworthy, setting a new standard for sustainability in the rare earth sector.
The agreement also signals increasing demand for high-performance magnets in various advanced technologies, from consumer electronics to electric vehicles and renewable energy systems. As the world transitions towards a greener economy, the need for these critical materials will only intensify, making secure and sustainable sourcing paramount.
Investment Insights
- MP Materials (NYSE: MP): This $500 million agreement provides a strong bullish signal for MP Materials. It validates their strategic investments in domestic rare earth processing and manufacturing. Investors should monitor the execution of this partnership and its potential to attract other major customers seeking secure, sustainable rare earth supply. The long-term nature of the contract provides revenue visibility and reduces market volatility risks. This could lead to increased analyst coverage and potential upgrades.
- Apple (NASDAQ: AAPL): While the financial impact on Apple's vast operations may seem modest, this partnership reinforces Apple's leadership in corporate sustainability and supply chain innovation. It mitigates potential future supply chain risks for critical components and enhances its brand reputation among environmentally conscious consumers and investors. This move aligns with ESG (Environmental, Social, and Governance) investment criteria, potentially attracting more institutional capital focused on sustainable portfolios.
This collaboration is a win-win, demonstrating how strategic partnerships can drive both economic growth and environmental progress. It sets a precedent for future collaborations aimed at building resilient and sustainable supply chains for critical materials.