Just days earlier, the Department of Defense also invested $400 million in MP Materials, calling it a major step in creating a domestic rare earth supply chain.
The deal comes as tensions with China continue to loom over global technology supply chains, especially when it comes to rare earths—materials that power everything from iPhones to electric vehicles. This bold step isn’t just about business—it’s about national security, tech independence, and a cleaner future.
According to Reuters, this deal marks one of Apple’s biggest efforts to invest directly in U.S. production infrastructure. MP Materials, the company behind the only operating rare-earth mine in the country, will play a key role in making magnets from 100% U.S.-sourced and recycled materials.
Why is Apple investing $500 million in MP Materials?
Apple’s $500 million investment in MP Materials isn’t just another supply deal—it’s a full-on strategic play to protect its future.
Right now, China dominates over 90% of the global rare earth magnet production, a critical part in devices like iPhones, AirPods, and Macs. These magnets power the haptics, speakers, and other essential components. Any disruption in China’s exports can cause serious ripple effects across the industry. With this investment, Apple is backing the expansion of MP’s domestic magnet factory in Fort Worth, Texas, as well as a new recycling line at the Mountain Pass facility in California. These magnets are made from neodymium-praseodymium (NdPr), one of the most valuable rare earth elements. According to BusinessWire, MP will start shipping these magnets to Apple by 2027—and they’re expected to go into hundreds of millions of Apple devices.
How does this deal benefit MP Materials?
For MP Materials, this isn’t just a cash boost—it’s validation and long-term business security.
The company has already been scaling up with government support. Earlier this year, the Department of Defense awarded MP a $400 million contract to expand rare earth processing capacity. Add in Apple’s funding, and the company now has a strong mix of public and private backing.
MP plans to produce 10,000 metric tons of rare-earth magnets a year by 2028, up from the current output of 1,000 tons. That’s a tenfold increase, and it could make MP the largest non-China producer in the world.
This investment comes with real jobs too—MP’s expansion in Fort Worth and Mountain Pass is expected to create over 500 new direct jobs and more than 1,000 indirect jobs in the next few years.
What’s happening with MP Materials stock after Apple’s investment?
Investors loved the Apple deal. MP Materials’ stock, trading under the ticker MP, shot up as much as 12% in pre-market trading on the day of the announcement. As of midday Tuesday, shares were trading at $48.52, up around 3.4% on the day.
The rally isn’t just about Apple. MP stock has had a wild ride in 2025, surging over 217% in the past year, according to Barron’s. The company has gained ground as global investors search for non-China rare earth sources.
Analyst ratings are also rising.
- Canaccord Genuity raised its price target from $27 to $55.
- Baird sees a fair value at $52.
- Yet, MarketBeat still shows a cautious average target of $31, reflecting the uncertainty around execution.
Still, this momentum—backed by both Apple and the Pentagon—is hard to ignore. MP now has both defense and tech demand locked in, which could reduce its reliance on short-term market cycles.
MP Materials stock reaction
- MP stock surged 11% after Apple’s investment was reported, hitting around $53.85.
- It had already jumped over 50% following the Pentagon’s announcement.
- Year-to-date, MP shares are up 90–110%, with analysts raising price targets up to $55.
What about Apple stock?
- Apple stock moved slightly higher (~0.2%), trading near $208–209.
- Investors see it as a smart long-term supply-chain strategy, though the market reaction was mild.
Why is this rare-earth magnet deal so important for the U.S.?
This deal is about more than magnets. It’s about controlling the future of clean energy, defense, and consumer tech.
Rare-earth magnets power electric vehicles, wind turbines, drones, and fighter jets. By bringing this supply chain home, Apple and MP are reducing reliance on China while helping the U.S. gain control over a critical technology sector.
The U.S. government has been pushing for this kind of investment for years. Now with Apple stepping in, private industry is finally matching that urgency. It’s also a win for sustainability—MP’s recycling plans mean less mining and less waste.
With Apple now in the game, expect more tech companies to follow. This could be the start of a major reshaping of how rare-earth supply chains work—and who controls them.
Is this a turning point for U.S. tech supply chains?
The story of Apple investing $500 million in MP Materials is more than just business—it’s a signal that big tech is ready to bring critical manufacturing home. With rare-earth magnets at the center of modern devices, this deal could shape the next decade of innovation.
MP now has momentum, government support, and a flagship customer. Apple gets security, sustainability, and control. The market is watching closely—and so are competitors.
If all goes as planned, the U.S. could finally break its rare-earth dependency and set the tone for tech production going forward.
FAQs:
What is Apple’s $500 million MP Materials deal about?
Apple is investing $500M in MP Materials to boost U.S. rare earth production and reduce China reliance.
What does MP Materials do?
MP Materials is a U.S.-based company that owns and operates the only rare earth mine in America. MP Materials mines and processes rare earth elements used in magnets for electronics, defense systems, and electric vehicles.
