Strengthening Supply Chains Under Political Pressure
Apple is investing $500 million in a new partnership with U.S. rare earths producer MP Materials, part of its broader effort to reinforce domestic supply chains amid growing political pressure from President Donald Trump. The deal includes a direct purchase agreement for rare earth magnets and the creation of a recycling facility in California that will extract rare earths from old Apple products.
The agreement is tied to a larger $500 billion initiative Apple announced earlier this year to expand its U.S. operations, aligning with Trump’s push to reduce dependence on Chinese manufacturing. Rare earth materials are essential for Apple’s devices, and China currently dominates over 90% of global rare earth processing. The move is seen as a strategic step to secure access to these critical components and reduce geopolitical risk.
Texas Plant to Power Global Apple Devices
MP Materials will develop new magnet manufacturing lines at its Fort Worth, Texas facility, specifically to serve Apple’s product lines. These magnets will be used in iPhones, iPads, MacBooks, Apple Watches, and other devices. The first shipments are expected in 2027, and the output will support production for “hundreds of millions” of Apple products, according to MP Materials.
The expansion is also expected to generate new U.S. jobs and contribute to training a specialized domestic workforce in magnet production — a skill set currently concentrated in China. Apple and MP Materials will work jointly to provide this training as part of the partnership.
Balancing Politics, Sustainability and Supply Needs
Trump has openly pressured Apple to bring iPhone manufacturing back to the U.S., warning of a 25% tariff on devices not assembled domestically. While Apple has made no commitment to shift iPhone production from Asia, the MP Materials deal may help ease tensions and demonstrate progress toward U.S.-based operations.
At the same time, the deal supports Apple’s environmental goals. The company already uses recycled rare earth materials in many of its products. The iPhone 16e, launched earlier this year, contains 30% recycled content. Apple has been advancing its recycling capabilities independent of political influence, and the new California recycling line aligns with this strategy.
Rare Earths, Global Supply Chains, and Strategic Gaps
Rare earth elements are not actually rare, but they are difficult and expensive to process. China’s monopoly in refining these materials has made them a flashpoint in global trade conflicts. The U.S. lacks the infrastructure and workforce expertise to compete, which is why partnerships like Apple’s with MP Materials are considered critical.
Apple joins other major tech firms in expanding U.S. operations. Texas Instruments has pledged $60 billion for domestic semiconductor manufacturing, TSMC is investing $100 billion, and Nvidia is building U.S.-based supercomputers. These moves reflect an industry-wide effort to localize production of key technologies in response to tariff threats and supply chain vulnerabilities.
