MP Materials’ (NYSE:MP) stock surged over 20% following the announcement of a US$500 million partnership with Apple to establish a dedicated rare earth recycling line. This agreement highlights the increasing importance of secure and sustainable rare earth supply chains. MP Materials is a US-based company focused on rare earth mining and processing, essential for manufacturing magnets and other high-tech components. The company aims to restore the full rare earth supply chain to the United States.
The deal includes long-term supply commitments and investments in MP’s magnetics facility in Fort Worth, Texas, signalling an intensified effort to secure domestic rare earth element sources. These materials, particularly neodymium and praseodymium (NdPr), are crucial for manufacturing permanent magnets used in various products, including iPhones, electric vehicles, and defence systems. Production and shipments are expected to commence in 2027, supporting the manufacture of hundreds of millions of Apple products.
This agreement positions MP Materials as a key player in America’s strategy for rare earth magnet independence, combining private sector innovation with public sector funding to create a secure, circular supply chain within the US. The project builds upon a recent $400 million equity investment by the US Department of Defence. This development has implications for Australian companies in the rare earth and critical minerals sector.
The partnership underscores the increasing importance of recycling in ensuring long-term supply resilience. As pressure mounts on global mining supply chains, efficient and scalable urban mining and closed-loop systems are becoming vital differentiators. This news signals that capital and demand are aligning for strategic, secure, and sustainable supply chains, especially for Australian companies with US operations or customers exploring downstream processing or recycling partnerships.
