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CUPERTINO - Apple (AAPL), currently valued at $3.12 trillion and maintaining a strong financial health score according to InvestingPro, announced on Tuesday a $500 million commitment with MP Materials to purchase American-made rare earth magnets and establish a new recycling facility in California.
The multiyear deal includes plans to develop magnets at MP Materials’ Independence facility in Fort Worth, Texas, specifically designed for Apple products. The companies will also build a rare earth recycling line in Mountain Pass, California, to process recycled materials from used electronics and post-industrial scrap. This strategic investment aligns with Apple’s robust operational performance, with the company generating over $400 billion in revenue over the last twelve months.
"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," said Tim Cook, Apple’s CEO, according to the press release.
The expansion of the Texas factory will include new neodymium magnet manufacturing lines that will increase MP Materials’ overall production capacity. The project is expected to create dozens of new jobs in advanced manufacturing and R&D, with both companies providing workforce training.
Apple introduced recycled rare earth elements in its Taptic Engine for iPhone 11 in 2019. Currently, nearly all magnets in Apple devices use 100 percent recycled rare earth elements, the company stated.
MP Materials is the only fully integrated rare earth producer in the United States. The collaboration aims to secure domestic supply of rare earth materials while advancing environmental progress through recycling innovation.
The commitment is part of Apple’s broader pledge to spend more than $500 billion in the U.S. over the next four years, according to the company’s statement. With a return on equity of 138% and strong profit metrics, Apple continues to demonstrate solid financial execution. Discover more detailed insights about Apple’s financial performance and future prospects in the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Apple reported that Citi has maintained its Buy rating for the company with a price target of $240. This comes as Citi adjusted its iPhone unit sales forecast, expecting 45 million units for the June quarter and 50 million for the September quarter. The investment bank cited tariff pauses and promotions in China as factors influencing demand, though it remains cautious about full-year iPhone demand due to potential AI feature delays. Additionally, Apple is planning a new product lineup for the first half of 2026, including a budget iPhone and updates to its iPad and Mac series. Bloomberg reports that these launches aim to stabilize revenue growth following recent uneven demand. Meanwhile, White House trade advisor Peter Navarro commented that Apple might believe it is "too big to tariff," sparking concerns about potential tariff impacts on Apple’s production costs. In the global smartphone market, Apple holds a 15.7% share, ranking second after Samsung, which leads with a 19.7% share. In China, Apple’s market share is 13.9%, trailing behind Huawei, Vivo, OPPO, and Xiaomi.
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