Apple Inc. (AAPL.US) is investing $500 million in MP Materials (MP.US), America's sole operational rare earth producer, triggering a 13% pre-market stock surge for the recipient company. The strategic partnership will see Apple source U.S.-manufactured rare earth magnets from MP Materials' Texas facility while jointly establishing two critical new installations: a magnet production center in Fort Worth, Texas, and an electronics recycling plant in Mountain Pass, California. The latter facility will process recovered materials for integration into future Apple devices.
This alignment with national priorities represents a significant triumph for the Trump administration, which has long classified domestic rare earth development as vital to national security. A senior White House official characterized the agreement as "beneficial for the nation and American workers," underscoring its geopolitical importance. The investment closely follows the U.S. Department of Defense's recent $400 million injection into MP Materials, intensifying efforts to fortify domestic supply chains amid concerns over foreign dependency.
China currently dominates the global critical minerals landscape, supplying roughly 60% of worldwide reserves and processing nearly 90% of these strategic resources. Apple's substantial capital deployment directly addresses this supply chain vulnerability while accelerating domestic production capabilities for essential technology components.
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