Apple makes $500 million deal with miner MP Materials for magnets

Apple and the miner Deputy announced A 500 million dollar agreement Rare Earths Magnets and the iPhone manufacturer Tuesday to improve a recycling facility that will strengthen the US supply chain.

MP material stock climbed 10%. Apple shares were marginalized.

As part of the agreement, Apple will buy rare earth magnets created at the company’s Fort Worth, Texas. Both companies will meet on a new rare land recycling line in Mountain Pass, California. MP Material plans to start Magnet transport in 2027.

“We direct everything we do in Apple and are proud to deepen our investment in the US economy,” Apple CEO Tim Cook said. He said. “Rare soil materials are necessary to make advanced technology, and this partnership will help strengthen the supply of these vital materials in the United States.”

Apple said that the agreement will create dozens of new production and research and development.

Rare soil magnets, smartphones and computers, such as consumer electronics to automobiles and renewable energy systems are the main components that make up.

For years, the United States has tried to prevent its confidence in China, which dominated the supply chain of global rare land elements. MP materials operate the single rare soil mine in the USA

At the beginning of this month, the Ministry of Defense became the largest shareholder of the Nadir Toprak Miner and purchased the preferred stock to improve the supply of rare earth magnets in American territory.

Earlier this year, Apple announced the plan to invest more than $ 500 billion to increase US production capabilities. The plan included a new factory for artificial intelligence servers in Texas.

WRISTWATCH: Pentagon invests in MP materials and guarantees the ground price for rare soil minerals