Apple is investing $500 million in a strategic partnership with US-based MP Materials to establish a domestic supply chain for rare earth magnets, essential components for its flagship products. The move comes as the tech giant faces pressure from the Trump administration to increase its manufacturing operations within the United States.
As part of the partnership announced Tuesday, Apple has committed to purchasing magnets directly from a new facility that MP Materials will construct in Fort Worth, Texas. Shipments are scheduled to begin in 2027 and will eventually support the production of hundreds of millions of Apple devices. The collaboration also includes the development of a new recycling line in California, designed to repurpose rare earth materials for future Apple products. Both companies will contribute to training programs to build a skilled US workforce for magnet manufacturing.
This investment is a significant step toward reducing Apple’s dependence on China, which controls approximately 92% of the global processing of rare earth elements. These materials are vital for a wide range of modern technologies, including smartphones, electric vehicles, and military hardware, making their supply a central issue in US-China trade relations.
The Trump administration has consistently pushed for major technology firms to onshore their manufacturing from facilities in China, India, and Vietnam. President Trump has publicly threatened Apple with substantial tariffs if it does not move to manufacture US-sold iPhones domestically.
While the deal addresses political concerns, it also aligns with Apple’s long-standing environmental objectives to incorporate more recycled content into its products. The company already utilizes recycled rare earths in the magnets of its latest iPhone, iPad, Apple Watch, and Mac models.
Despite this strategic investment in components, a full-scale relocation of iPhone assembly to the US remains unlikely due to significant hurdles, most notably the lack of a large, highly specialized labor force required for such complex manufacturing. Both industry experts and Apple CEO Tim Cook have previously cited this skills gap as a major obstacle.
Apple’s initiative is part of a broader trend among technology leaders to expand their American manufacturing footprint. Other recent commitments include a $60 billion investment by Texas Instruments for US semiconductor production, a $100 billion investment from Taiwanese chipmaker TSMC for its US facilities, and Nvidia’s announcement that it will build its AI supercomputers in the United States.
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