Apple's $500 Million Power Move Just Put This U.S. Supplier on Every Investor's Radar

Apple AAPL just made a $500 million move that could reshape the rare-earth supply chainand investors are taking notice of MP Materials MP. Under a new multiyear deal, Apple AAPL will source U.S.-made rare-earth magnets from MP starting in 2027, as part of its broader strategy to reduce reliance on China. These magnets are key components inside iPhones and other devicespowering things like the haptic engine and internal microphones. MP will produce the magnets in Texas, using recycled materials processed at a new California facility, both part of a vertically integrated supply chain that Apple hopes can withstand future geopolitical shocks.

For context, China has long dominated global rare-earth magnet production. But that dominance has come under pressure, especially after Beijing imposed export controls last spring in response to U.S. tariffs. That move caused a scramble among Western manufacturers and led to supply chain reevaluations across the tech industry. Apple, already under political pressure from former President Trump to bring more of its operations back to the U.S., appears to be responding with more tangible stepsstarting with this agreement. According to MP's SEC filing, Apple will make a $200 million prepayment, a rare move that signals commitment from both sides.

This shift also aligns with Apple's previously announced plan to spend $500 billion in the U.S. over four years. While analysts at Bank of America suggest much of that was already planned, the MP deal suggests Apple could be reallocating spending from other regions into strategic domestic capacity. Though the company continues expanding in India and Vietnam, this magnet supply agreement may signal that Apple sees long-term risk in depending on China for mission-critical inputs. And for MP, this could be a breakout momentcementing its role as a key supplier for one of the world's most valuable companies.