Apple just spent $500 million to purchase a necessary component for iPhones from the United States.

 

In response to demands from President Donald Trump to build its well-liked smartphones locally, Apple is investing $500 million in a partnership with the US rare earths business MP Materials. In order to strengthen its US supply chain, Apple agreed to purchase rare earth magnets directly from MP Materials as part of the cooperation that was revealed on Tuesday. Additionally, Apple and the firm will work together to develop a new recycling process in California that will recycle rare earth minerals and use them in Apple products.

As the Trump administration presses for domestic technology manufacturing and lessens dependency on China, the action is a component of a $500 billion investment Apple outlined earlier this year to grow its US operations. In trade negotiations between Washington and Beijing, rare earths—which are essential for everything from cellphones to TVs and military aircraft—have been a major negotiating chip. China is in charge of almost all rare earth processing, which explains this. Tim Cook, the CEO of Apple, said in a news release that "We're proud to deepen our investment in the US economy, and American innovation drives everything we do at Apple." The United States' supply of rare earth minerals, which are necessary to produce cutting-edge technology, will be strengthened by this agreement.."

New magnet production lines will be developed at MP Materials' Fort Worth, Texas, factory especially for Apple goods. According to MP Materials, shipments are anticipated to start in 2027 and eventually support "hundreds of millions of Apple devices." Delivery of the materials will take place both domestically and internationally. Numerous new jobs will be created by the expansion, according to Apple. Additionally, both businesses will offer training to build a workforce in the US for the production of magnets.