Apple invests $500 million to bolster U.S. rare earth minerals supply

In July 2025, Apple announced a significant investment to strengthen the production of rare earth materials in the United States. This commitment of $500 million to MP Materials marks a pivotal moment in supporting domestic sources for rare earth magnets essential for electronics, particularly iPhones. The investment is part of a larger strategy pushed by the Trump administration aiming to boost American manufacturing and reduce dependency on foreign sources, especially given China's dominance over these critical minerals. The deal is expected to create local jobs and enhance the U.S. rare earth industry’s capabilities. The agreement will not only cover the production of rare earth magnets but also lead to the development of a new recycling facility in California, designed to repurpose materials from used electronics. This aligns with Apple's commitment to incorporate recycled materials in its products, showcasing a blend of environmental sustainability and economic strategy. Additionally, a new factory to manufacture magnets specifically for Apple's devices will be established in Texas, potentially reshaping the supply chain for producing electronics within the U.S. This partnership highlights the increasing urgency for the U.S. to secure its supply of rare earth materials, especially amid ongoing trade tensions with China, which produces around 60% of the world's vital minerals. The deal has garnered praise from government officials, who see it as a significant victory for national security and economic interests. By prioritizing domestic production, Apple and MP Materials aim to mitigate risks associated with international supply dependencies. Furthermore, this investment is accompanied by a parallel move from the U.S. Department of Defense, which also committed $400 million to MP Materials. This collaboration between the private sector and federal government emphasizes the importance of ensuring a reliable and stable supply of rare earth elements vital for both commercial and defense applications. The strategic focus on rare earth minerals has been termed essential for the nation’s technological advancements and military preparedness, marking this moment as crucial for future developments in U.S. manufacturing and economic independence.