In a bold move to strengthen its domestic manufacturing ecosystem, Apple has invested $500 million in MP Materials, a leading US rare earths company. The deal is part of Apple’s broader strategy to localize critical components, reduce reliance on China, and align with rising political pressure from the Trump administration to manufacture more products in the United States.
Announced in July 2025, the partnership will supply Apple with rare earth magnets—essential for devices like iPhones, iPads, Apple Watches, and MacBooks—and also fund a new recycling line in California to recover rare earths from old devices.
Why Rare Earths Matter for Apple
Rare earth elements are used to produce powerful magnets in electronic components such as speakers, haptics, and sensors. Though not actually rare, these materials are difficult to extract and process, and China currently controls over 90% of global rare earth refining.
This dependence on a single source has raised concerns about national security and supply chain resilience—especially for companies like Apple that rely on stable access to these critical materials.
By partnering with MP Materials, Apple is:
- Strengthening its US supply chain
- Gaining more control over rare earth availability
- Reducing exposure to geopolitical risks
- Advancing its sustainability goals
A Political and Strategic Move
This investment aligns with President Donald Trump’s renewed calls for Apple to produce iPhones in the United States. In a recent post on Truth Social, Trump said:
“I expect their iPhones… to be manufactured and built in the United States, not India, or anyplace else.”
Apple’s decision may help ease political pressure while positioning the company as a leader in restoring domestic manufacturing capabilities.
While Apple has not committed to shifting final iPhone assembly to the US—a move that would require a major restructuring of its global operations—this rare earth partnership is a strategic step in that direction.
Domestic Magnet Manufacturing in Texas
MP Materials will establish magnet manufacturing facilities in Fort Worth, Texas, dedicated specifically to producing components for Apple. These magnets will begin shipping in 2027 and are expected to be used in hundreds of millions of devices worldwide.
The new facility will:
- Create dozens of high-skill jobs
- Provide training programs to develop domestic expertise
- Help build a long-term US-based rare earth ecosystem
This is crucial, as the US currently lacks the highly specialized labor force and equipment to fully support high-volume electronics manufacturing.
Recycling for a Greener iPhone
Apple’s commitment to sustainability is also central to the partnership. The company and MP Materials will collaborate on a recycling facility in California, designed to extract and reuse rare earth elements from old Apple devices.
Apple already uses 30% recycled content in its latest iPhone 16e and claims that magnets in all major Apple products now include recycled rare earths.
This recycling initiative will:
- Reduce Apple’s environmental impact
- Lower demand for newly mined materials
- Support the company’s goal of carbon neutrality
The Bigger Picture: US Tech Reindustrialization
Apple joins a growing wave of tech companies investing in US-based manufacturing:
- Texas Instruments pledged $60 billion to build chips in the US
- TSMC invested $100 billion in domestic semiconductor plants
- Nvidia announced plans to build supercomputers in the US
These moves signal a broader shift toward supply chain sovereignty, where technology firms prioritize local production to ensure long-term stability and control.
Apple’s $500 million investment in MP Materials represents more than just a supply agreement—it’s a strategic pivot toward domestic resilience, political alignment, and environmental responsibility. While full-scale iPhone manufacturing in the US may still be years away, Apple is clearly laying the groundwork.
By investing in critical materials, sustainable recycling, and workforce development, Apple is not only future-proofing its operations but also helping to rebuild America’s technological infrastructure—one rare earth magnet at a time.
