The US government just took an equity stake in MP Materials, the US' largest rare earths producer.
I spoke with the @FinancialTimes about what this says about the evolving relationship between state and market in the current industrial policy era.https://t.co/D2UN4GshkQ
— Todd N. Tucker (@toddntucker) July 15, 2025
Apple has entered into a $500 million agreement with MP Materials to source rare earth magnets from within the United States. The deal involves a $200 million prepayment from Apple for magnets that are expected to start being delivered in 2027. This move is seen as beneficial for Apple’s image in Washington, as it shows the company’s commitment to supporting domestic production.
MP’s shares surged by 20% following the announcement of the partnership.
Today in "Progressive Should Have Gotten There First":
Trump has US government take an equity stake in rare earths producers MP Materials.@MattZeitlin has the story, w/ @AlexSJacquez and @ashzforbes.https://t.co/a39NFTkwAN
— Todd N. Tucker (@toddntucker) July 14, 2025
The strategic partnership aims to make Apple’s supply chain more sustainable and resilient by reducing its reliance on rare earth materials sourced from other countries. It aligns with broader industry trends that emphasize localizing critical supply chains amid global geopolitical tensions.
MP Materials’ facility in Fort Worth, Texas, will set up new magnet manufacturing lines specifically for Apple products.
As we discussed in Saturday's newsletter. Investing in what you need.. not what you want. https://t.co/Eb0gTSByz7
— Merryn Somerset Webb (@MerrynSW) July 15, 2025
Apple strengthens supply chain resilience
The shipments are expected to begin in 2027 and will support hundreds of millions of Apple devices.
The expansion is also expected to create dozens of new jobs and provide training to develop a U.S. workforce skilled in magnet manufacturing. China currently controls about 92% of the global output in rare earths processing, which is a critical phase for producing elements used in everything from smartphones to military jets. By investing in U.S.-sourced rare earths, Apple can mitigate some of the risks associated with the global rare earths market and contribute to the growth of the American manufacturing sector.
“American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the U.S. economy,” said Apple CEO Tim Cook. “Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States.”
The deal is part of the Trump administration’s push for domestic production of electronics, aligning with U.S. industrial policy. Last week, MP Materials struck a multibillion-dollar deal with the U.S. Department of Defense, making the Pentagon MP’s largest shareholder and financial backer.
