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Apple (NASDAQ:AAPL) is likely to commit $500 million to MP Materials (NYSE:MP), the only rare earth mine currently operating in the U.S., Fox News Digital reported, citing sources.
Shares of MP Materials (NYSE:MP) jumped over 12% premarket following the report.
The deal includes plans for Apple (NASDAQ:AAPL) to buy American-made rare earth magnets from MP’s Texas facility and building two new factories—one in Fort Worth, Texas for magnet production and another in Mountain Pass, California, for recycling materials from used electronics for application in future Apple products.
The partnership is seen as a ‘major win’ for the Trump administration, which has prioritized domestic rare earth mining for national security. A senior White House official called the agreement “good for the country, good for American workers.”
The announcement comes just days after the Department of Defense unveiled a $400 million investment in MP Materials (MP) to boost the domestic supply chain and reduce reliance on China, which currently produces around 60% of the world’s critical mineral supply, and processes up to 90%.