MP Materials and Apple Forge Strategic $500M Agreement Amid U.S.-China Trade Tensions

MP Materials, which manages the only American rare earths mine, has partnered with Apple in a $500 million agreement to produce powerful magnets for iPhones and other high-tech devices. This significant deal comes shortly after the U.S. Defense Department's $400 million investment in MP Materials.

The Las Vegas-based company is now poised to expand its Texas factory to recycle materials for magnet production, with plans to start serving Apple's needs by 2027. This move aligns with a broader effort by the U.S. to establish a stable supply chain for rare earth elements, crucial for military and tech industries, amid rising trade tensions with China.

Analyst Neha Mukherjee notes that the Pentagon's long-term price guarantee for key elements like neodymium ensures stable revenue for MP Materials, protecting them from potential price competition from China. While the U.S. and China have attempted to ease trade tensions, both sides remain cautious, as the rare earth element supply complicates ongoing negotiations.

(With inputs from agencies.)