Apple announced a $500 million, multiyear deal with MP Materials to launch a new recycling facility in California for producing vital rare earth magnets used in many types of electronics, including iPhones.
The deal also commits Apple to buy American-made magnets from MP Materials flagship facility in Fort Worth, Texas. Apple noted in a statement on Tuesday that the deal with MP is part of an Apple pledge to spend more than $500 billion in the US over the next four years and comes as White House officials and President Trump have continued to push for Apple to move iPhone production to domestic sites.
“American innovation drives everything we do at Apple, and we’re proud to deepen our involvement in the US economy,” said Apple CEO Tim Cook in a statement.
With the announcement of the deal, MP saw an early Tuesday surge in its stock of 16%, reaching $56.41 a share.
The two companies said they will built out the Texas factory with manufacturing for neodymium magnet lines specifically for Apple products. Once built, the American-made magnets will be shipped across the country and the globe to help meet increasing demand for the material. The increase in production will require dozens of new jobs, they said.
In Mountain Pass, Calif., the new recycling facility the companies create will enable MP to take in recycled rare earth feedstock, including from used electronics, and reprocess it for Apple products. The companies have been piloting advanced recycling technologies for five years. Nearly all magnets in Apple devices are made with 100% recycled rare earth elements.