Apple’s $500M Bet on MP Materials Fuels Rare Earth Revaluation Narrative

Published 15/07/2025, 19:06
Updated 15/07/2025, 19:18

MP Materials Corp (NYSE:MP) shares jumped significantly on Tuesday, following reports that Apple Inc (NASDAQ:AAPL). is expected to announce a $500 million investment commitment to the rare earths mining company.

The news comes just one week after MP Materials secured a multibillion-dollar deal with the U.S. Department of Defense to boost domestic rare earth magnet production and reduce America’s reliance on Chinese suppliers. This strategic partnership highlights the growing importance of securing critical materials supply chains for both national security and consumer electronics manufacturing.

Apple’s Strategic Investment in Critical Materials Sparks Stock Gains for MP

According to Fox Business, Apple’s $500 million commitment to MP Materials includes plans for the tech giant to purchase U.S.-made rare earth magnets from MP’s Texas facility.

The agreement also involves building another factory in Fort Worth, Texas for magnet production and establishing a new recycling facility in Mountain Pass, California. MP Materials, which operates the only U.S. rare earths mine, already produces mined and processed rare earths and expects to begin commercial magnet production at its Texas facility by the end of 2025.

This investment represents Apple’s efforts to secure critical materials needed for its products, including iPhones, iPads, and other devices that rely on rare earth magnets. The partnership comes as tech companies face increasing pressure to diversify their supply chains away from China, which has historically dominated the rare earths market.

Apple’s commitment aligns with broader U.S. government initiatives to strengthen domestic production of materials essential for both consumer electronics and national defense applications.

MP Materials shares surged on Tuesday, building on the previous day’s 7.56% gain that closed at $48.52. The stock has shown significant volatility with a 52-week range of $10.02 to $50.98, reflecting both the challenges and opportunities in the rare earths sector. With a market cap of $7.931 billion and high beta of 2.14, MP Materials represents a volatile but potentially rewarding investment in critical materials infrastructure.

The recent momentum follows MP Materials’ multibillion-dollar agreement with the U.S. Department of Defense announced last week, which includes a price floor for rare earths set at nearly twice the current market level. This price guarantee is designed to spur investment in domestic mines and processing plants, addressing long-standing concerns about China’s dominance in the rare earths market.

Meanwhile, Apple stock has faced headwinds, trading at $208.62 with a year-to-date decline of 16.49%, underperforming the S&P 500’s 6.58% gain as investors remain cautious about the tech sector’s near-term prospects.

***

Looking to start your trading day ahead of the curve? Get up to speed before the bell with Bull Whisper—a sharp, daily premarket newsletter packed with key news, market-moving updates, and actionable insights for traders.

Start your day with an edge. Subscribe to Bull Whisper using this link.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.