Apple signed a $500 million contract with the American company MP Materials to supply rare earth magnets. The agreement aims to reduce production volumes outside the US, informsReuters agency.
“As part of the deal, Apple will buy rare-earth magnets made at the company’s facility in Fort Worth, Texas. The two companies will join forces on a new rare-earth materials processing line in Mountain Pass, California. MP Materials plans to begin shipping magnets in 2027,” – the message says.
The contract is part of Apple’s strategy to move iPhone production to the US amid the Trump administration’s drive to reduce reliance on Chinese manufacturing facilities.
“American innovation is at the heart of everything we do at Apple, and we’re proud to deepen our investment in the U.S. economy. Rare earth materials are essential to the creation of advanced technologies, and this partnership will help strengthen the supply of these vital materials here in the United States.” – Apple CEO Tim Cook said in a press release.
Shares of MP Materials rose 26% to a record high on the news, while shares of Apple gained 1%.
It will be recalled that on July 11, the Pentagon purchased 15% of the shares of MP Materials and made a direct investment of 400 million dollars in the company. She operates a mine in Mountain Pass, California, where rare earth elements such as neodymium and praseodymium are mined, materials needed to make weapons and electric cars.
