Apple is preparing to announce a $500 million investment in MP Materials, the operator of the only rare earths mine in the U.S., according to Fox Business sources.
The deal is part of Apple’s broader strategy to localize its supply chain for critical components. It will involve purchasing U.S.-made rare earth magnets from MP’s Texas plant, which is expected to begin commercial production by year-end.
Shares of MP Materials surged 12.3% to $54.50 in pre-market trading following the report.
The partnership expands on MP’s recent multibillion-dollar deal with the U.S. government, aimed at boosting rare earth production and reducing China’s dominance in the sector. Rare earths are essential for manufacturing EVs, weapons systems, and electronics—including Apple’s devices.
In addition to the Texas expansion, Apple and MP plan to build a new magnet factory in Fort Worth and a rare earth recycling facility in Mountain Pass, California, according to the report.
The U.S. Department of Defense last week set a price floor for key rare earth materials to encourage domestic production. The guaranteed prices are nearly double the current market rates, ensuring a more competitive environment for U.S. miners and processors.
Neither Apple nor MP Materials has commented publicly on the report.