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2w ago

Pentagon Becomes MP Materials’ Largest Shareholder as Apple Pledges $500M for Domestic Rare Earth Magnets

The agreements aim to establish a US-controlled mine-to-magnet supply chain by leveraging federal equity alongside corporate procurement commitments.

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A view of the MP Materials rare earth open-pit mine in Mountain Pass, California, U.S. January 30, 2020. Picture taken January 30, 2020. REUTERS/Steve Marcus/ File Photo
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Overview

  • The Department of Defense invested $400 million in preferred shares to acquire a 15% stake in MP Materials with a 10-year warrant convertible at $30.03 per share.
  • Apple agreed to a multiyear $500 million deal to buy neodymium magnets from MP Materials’ Fort Worth facility, including a $200 million upfront payment for shipments expected to begin in 2027.
  • Both companies will build a rare earth recycling line at Mountain Pass, California, to process recycled feedstock into magnets for Apple devices.
  • Processing upgrades in Texas and expanded refining at California’s Mountain Pass site are designed to secure a sovereign US source for critical minerals by 2027.
  • The partnerships aim to reduce reliance on Chinese suppliers, which control nearly 70% of US rare earth imports, while supporting advanced manufacturing and research roles.