Newsletter
Apple is all set to invest $500 million in MP Materials, the company that runs the only rare earths mine in the US.
Rare earths are a group of 17 metals used to make magnets that turn power into motion. These metals are key to making magnets that power electric vehicles, wind turbines, smartphones, and fighter jets.
Why it’s important: rare earth magnets have been a key point in US-China trade fights. After a deal in Geneva this June, China has agreed to restart magnet exports in return for the US relaxing some tech trade restrictions.
China halted exports in March as part of a trade spat with U.S. President Donald Trump who showed some signs of easing late last month, even as the broader tensions underscored demand for non-Chinese supply.
The deets: MP just signed a multi-billion dollar deal with the US Department of Defense to ramp up magnet production and reduce China's grip on supply. Apple will buy these made-in-America magnets from MP’s Texas plant, their first major supply deal since the government stepped in to fund them.
MP already produces mined and processed rare earths and has said it expects to start commercial magnet production in Texas facility by the end of this year. The company currently mines and refines rare earths. Now, it plans to start making magnets at its Texas plant by year-end.
The two companies would build another factory in Texas to produce magnets and a new recycling facility in Mountain Pass, California, near the company's existing mine.
Apple and MP will also set up a second magnet factory in Texas and a recycling unit in California, right near MP’s mine.
Worth noting: MP’s stock doubled in just four sessions. It first jumped 50% after the Pentagon said it would invest $400 million in the company. Add funds from JPMorgan and Goldman Sachs, and the total hits $1 billion.
Where India stands: after China paused rare earth exports earlier this year, global alarms went off including in India.
To reduce its dependence on China, India has asked IREL (India) Ltd to boost local rare earth production. The government has also cleared new exploration projects in Andhra Pradesh and Odisha. In parallel, it’s inviting global tech partners to help set up magnet processing units within India. Efforts are also underway to fast-track the PLI scheme focused on critical minerals like rare earths.
Right now, we have the raw materials but not the processing tech or infrastructure. That’s the gap India is working to close.
