Highlights
- MP Materials and Apple announce $500 million partnership.
- Objective: Produce 100% recycled rare earth magnets in the United States.
- Facility expansion planned in Fort Worth, Texas.
- Magnet production targeting Apple devices set to begin in 2027.
- Strategic initiative aims to strengthen US industrial capacity and rare earth supply chain circularity.
In a bold step toward domestic rare earth supply chain resilience, MP Materials (NYSE: MP (opens in a new tab)) and Apple Inc. have announced a $500 million strategic partnership to manufacture 100% recycled rare earth magnets in the United States. The long-term agreement, revealed via Business Wire and the company on July 15, was authored by MP’s communications team and includes plans to expand MP’s Fort Worth, Texas, magnet facility—dubbed “Independence”—to supply rare earth magnets for hundreds of millions of Apple devices starting in 2027.
As of this writing, on July 15, 2025, at 7:20 AM, the company trades at $48.52.
The recycled feedstock will originate from post-industrial and end-of-life magnets, processed at MP’s Mountain Pass, California, site. A dedicated magnet recycling line will be built there, marking a significant commercial step for U.S. rare earth circularity. The initiative complements MP’s public-private partnership with the U.S. Department of Defense to onshore the full magnet supply chain.
According to MP CEO James Litinsky, the deal “deepens vertical integration, strengthens supply chain resilience, and reinforces America’s industrial capacity at a pivotal moment.”
Key Questions for Investors
- Timelines & Delivery Risk: Magnet shipments are scheduled to begin in 2027; however, construction, permitting, and processing scale-up must be successful first. This adds execution risk.
- Feedstock Volume & Grade: How much recycled material is realistically recoverable from end-of-life Apple products? Can MP consistently meet Apple’s high-spec standards at scale?
- Revenue Transparency: No revenue figures disclosed. Are these fixed-price contracts? Volume-based? Retail investors should watch for SEC filings or earnings guidance clarifying margins and structure.
- OEM Exclusivity?: It’s unclear whether this partnership limits MP from supplying other U.S. tech or EV firms. Could this slow diversification?
While the Apple-MP Materials partnership presents a promising narrative of circularity and domestic reindustrialization, significant investor risks remain. First, the success of the deal hinges on MP’s ability to execute complex facility expansions and commission new recycling infrastructure—a high CapEx, multi-year undertaking with exposure to permitting, supply chain, and labor bottlenecks. Second, the availability and consistency of post-consumer rare earth feedstock—particularly dysprosium and terbium—raises questions. Apple’s stringent magnet performance standards may prove challenging to meet with variable recycled input, especially at mass scale. Third, contractual opacity around pricing and volume commitments leaves revenue projections speculative. Investors currently lack visibility into margins, escalation clauses, or risk-sharing terms. Finally, the lack of clarity on exclusivity may constrain MP’s ability to serve other OEMs in the near term, concentrating risk around a single customer with substantial negotiating leverage. These uncertainties, combined with MP’s broader efforts to scale magnet production and meet DoD benchmarks, underscore the need for cautious optimism.
Of course, if Rare Earth Exchanges gathers new details, this will be updated.
Bottom Line for Investors:
This is big policy-backed validation for MP’s recycling ambitions—and a signal that Apple is doubling down on U.S. rare earth sourcing. But it’s early. Fort Worth expansion and Mountain Pass recycling aren’t yet online. Watch for capital expenditures (CapEx) timing, customer disclosures beyond Apple, and the ramp-up pace to 2027 or beyond, particularly if there are any execution issues.
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