Apple signs $500 million deal with MP Materials for rare earth magnets, eyes US supply chain expansion | Details
Apple signed an agreement of $ 500 million with MP materials for rare soil magnets, reducing the risk of supply after China’s prevented exports this year and represented a big rising shares for MP for MP.
The support of one of the most valuable companies in the world agreed to make a multibillion -dollar agreement that would see that Pentagon was the largest shareholder of the US Department of Defense last week.
Las Vegas -based company’s stock price has almost doubled since the government agreement has been announced. Since CEO Jim Letinsky has made a profit from what he calls a “very annoying çıkmak environment for rare worlds, he has made a remarkable return since last year when he was thinking of unifying with his rival of Australia.
The agreement, which was announced on Tuesday, guarantees a regular flow of rare earth magnets free from China, the world’s largest manufacturer in the world.
For Apple, the US gives maches compared to a long -term risk that the cost of supporting the production of magnets can lose access to completely critical components.
“We are at a time when managers are willing to pay an important premium for a reliable supply chain for a reliable supply chain.” He said.
In response to US President Donald Trump’s tariffs, China received export restrictions on rare worlds in April. Although the United States and China have reached an agreement that resolves most of the rare land dispute in June, wider trade tensions continue to emphasize the demand for non -Chinese supply.
As part of the agreement, Apple will pay $ 200 million to MP for a magnet supply planned to start in 2027.
Companies did not explain the length of the agreement or the volumes of the magnets to be given.
The agreement requires Magnets made of recycled material in accordance with the goal of terminating Apple’s confidence in the mining industry. Deputy Fort Worth will be produced in Texas, deputy, California, Mining Complex will be produced using recycled magnets.
“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,” said Apple CEO Tim Cook. He said.
Bob O’donnell, President of Sunday research firm Technalysis Research, said that the movement of Tuesday is “completely logical”, given that Apple needs a significant rare soil magnet for its devices.
“It also helps to position Apple more positively in Washington, focusing on a US -based supplier,” he said.
Apple said that the agreement is part of a four -year investment commitment of $ 500 billion to the US, considering labor costs and existing smartphone supply chain, many analysts encountered threats on iPhones that were not made in the US, but many analysts said it was not possible to make iPhones in the USA.
Apple did not explain which devices to use magnets. MP said the agreement will supply magnets for hundreds of millions of devices, which will constitute a significant portion of Any of Apple’s product series.
MP, rare lands with mines and processes and said he expects to start the production of commercial magnets at Texas facility by the end of this year.
The last week’s agreement between MP and the US government includes a price base for rare lands designed to promote investment in delayed domestic mines and processing facilities due to low prices in China.
The company also has Magnet supply agreements with General Motors and Germany with Vacuumumschmelze.
Rare soils are a group of 17 metals used to make magnets that activate power, including devices that vibrate their mobile phones. They are also used in weapons, electric vehicles and many other electronics.
