Apple has inked a $500 million cope with the operator of a Texas-based mine producing uncommon earth supplies used to construct iPhones and different {hardware} – a transfer that comes as CEO Tim Prepare dinner’s agency appears to scale back its reliance on China.
The Cupertino, Calif.-based agency is partnering on the multiyear cope with MP Supplies, which it described because the “only fully integrated rare earth producer in the United States.” Apple will purchase uncommon earth magnets produced at MP Supplies’ facility in Fort Price, Texas.
“Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States,” Prepare dinner mentioned in a press release.
Apple and MP Supplies may even collectively develop a uncommon earth recycling plant in Mountain Move, Calif. and collaborate on creating new uncommon earth processing applied sciences to spice up magnet efficiency.
The Fort Price facility shall be upgraded with “a series of neodymium magnet manufacturing lines specifically designed for Apple products,” in accordance with Apple.
“Once built, the American-made magnets will be shipped across the country and all over the world, helping to meet increasing global demand for the material,” the corporate mentioned.
Apple’s pledge surfaced simply days after the US Protection Division introduced it might purchase $400 million in most well-liked inventory in MP Supplies, changing into its largest shareholder.
Apple shares have been flat in Tuesday buying and selling.
The corporate’s inventory is down 14% for the reason that begin of the yr – due partly to uncertainties associated to the US-China tariff struggle.
As The Submit has reported, China’s near-stranglehold on uncommon earth metals and different essential minerals has emerged as a key level of dispute in commerce talks between Beijing and the Trump administration.
Uncommon earths are wanted for shopper digital items like smartphones and laptops in addition to army {hardware} like F-35 fighter jets and drones.
China controls as much as 70% of the world’s essential minerals provide and roughly 90% of the processing capability, in accordance with most estimates.
Apple has sped up efforts to fabricate extra merchandise outdoors of China, which produces most of its iPhones and different {hardware}.
That features shifting manufacturing to services in India and Vietnam.
The $500 million determine is a part of the greater than $500 billion that Apple has pledged to spend throughout the US over the following 4 years.
The corporate introduced the expanded pledge shortly after President Trump took workplace in January.
