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5h ago

Pentagon Finalizes 15% Stake in MP Materials as Apple Commits $500 Million to Rare Earth Magnet Deal

This initiative lays groundwork for U.S. magnet production from MP Materials facilities with first shipments targeted for 2027.

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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 Pentagon’s 15% equity stake comprises convertible preferred shares, a 10-year warrant, price guarantees at $110 per kilogram for neodymium-praseodymium oxide and a $150 million loan.
  • As part of its investment, the Defense Department has committed to purchase all magnets produced at MP Materials’ Mountain Pass facility.
  • Apple’s $500 million multiyear agreement secures neodymium-praseodymium magnets from MP’s Fort Worth plant and funds a rare earth recycling line at Mountain Pass.
  • Both partnerships underpin expansions at Mountain Pass, California, and Fort Worth, Texas, with first domestic magnet shipments expected in 2027.
  • U.S. dependence on China for more than 70% of refined rare earths has fueled these public-private initiatives to enhance national security and strengthen high-tech supply chains.