Apple to Invest $500M in Rare Earths Producer MP Materials
Apple, a major player in consumer electronics, is anticipated to make a $500 million investment in MP Materials, which operates the only rare earths mine in the U.S., according to Fox Business, citing sources familiar with the deal.
Apple, a major player in consumer electronics, is anticipated to make a $500 million investment in MP Materials, which operates the only rare earths mine in the U.S., according to Fox Business, citing sources familiar with the deal.
Rare earth elements consist of seventeen metals that are indispensable for the manufacture of magnets capable of converting electrical energy into mechanical motion. China suspended exports of these metals in March amidst a trade dispute with U.S. President Donald Trump. Although some indications of a thaw appeared late last month, the ongoing tensions continue to emphasize the necessity for alternative supply sources outside China.
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Recently, the Member of Parliament approved a multibillion-dollar agreement with the United States Department of Defense aimed at enhancing the production of rare earth magnets and diminishing China's market dominance.
According to a report by Fox Business, this agreement includes plans for Apple to procure U.S.-produced rare earth magnets from MP Materials' facility in Texas. This marks MP’s inaugural supply arrangement for its magnets since its financial dealings with the U.S. government.
MP is already engaged in the mining and processing of rare earth elements and anticipates beginning commercial magnet production at its Texas facility by the end of the year.
Furthermore, the report indicates that the two entities will collaborate on the construction of an additional manufacturing plant in Texas dedicated to magnet production, as well as establishing a recycling facility in proximity to the existing mine in Mountain Pass, California.
The recent U.S. government agreement also establishes a price floor for rare earth elements to incentivize investment in domestic mining and processing activities, which have been hindered by the low prices typically set in China.
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