Apple invests 500 million dollars in American rare earth metals mine

Published: 2025-07-16 03:01:09 ET AAPL

Published on 07/16/2025 at 03:01

Key takeaways

Apple is investing 500 million dollars in MP Materials, the only operational rare earth mine in the US. This was reported by Fox Business. The agreement is a significant victory for the Trump administration, which has prioritized domestic extraction of rare earth metals and supply chain security.

As part of the agreement, Apple will purchase rare earth magnets produced in the United States at MP Materials’ factory in Texas. The collaboration also includes the construction of a new recycling facility in Mountain Pass, California, to reuse materials from used electronics in future Apple products. In addition, Apple and MP Materials plan to build another factory in Fort Worth, Texas, for the production of magnets used in Apple devices and other global electronics products.

Government support

A senior White House official welcomed the deal as a major success for President Trump, who recognized the importance of securing a domestic supply of rare earth metals. The official praised Apple’s leadership in putting US interests first and predicted that the venture would be mutually beneficial for the country, its workers, and the companies involved.

Dependence on China

The agreement follows the recent 400 million dollar (344 million euro) investment by the Department of Defense in MP Materials. This public-private partnership aims to establish a complete American supply chain for rare earth magnets and reduce dependence on foreign sources. China currently dominates the global market for rare earth metals, controlling about 60 percent of production and up to 90 percent of processing.

The agreement comes after President Trump and Chinese President Xi Jinping reached an agreement to resume trade in critical minerals following a temporary halt in early 2025. The resumption follows a series of tariffs imposed by the White House on China and other countries. In March, President Trump issued an executive order emphasizing that domestic mineral production must be urgently increased for national security reasons.