U.S. Mining Industry Receives Support from Apple as They Invest $500 Million in Trump-Backed Rare Earth Minerals Project
In a significant move towards bolstering domestic rare earth supply chains, Apple has entered into a partnership with MP Materials, the only operational rare earth mine in the United States. This partnership, hailed as a "transformational public-private partnership" by a senior White House official, could have far-reaching implications for technology companies reliant on these critical materials.
The Trump administration has made rare earth mining and bolstering domestic supply chains two of its top national security priorities. In March, President Donald Trump signed an executive order to increase American mineral production, citing it as "imperative" for U.S. national security. This strategic focus on domestic rare earth production is aimed at reducing foreign dependency on these minerals, particularly China, which currently produces approximately 60% of the world's critical mineral supply and processes up to 90%.
MP Materials, in response to an ongoing tariff battle, recently cut off the supply of rare earth materials to China. The company has now entered into a significant partnership with the U.S. Department of Defense (DoD), receiving a $400 million investment and a 10-year price floor for neodymium-praseodymium (NdPr) metal alloy. This partnership aims to accelerate the build-out of a U.S. rare earth magnet supply chain, thereby enhancing U.S. industrial resilience and countering China's dominance in the global rare earth market.
Under the terms of the agreement, Apple is expected to purchase American-made rare earth magnets from MP Materials' Texas facility. The tech giant is also expected to announce a $500 million commitment to MP Materials. Furthermore, Apple plans to build a new recycling facility in Mountain Pass, California, to reprocess materials from used electronics for future Apple products.
The senior White House official encourages other companies to take notice of Apple's actions, viewing them as a model for how public-private partnerships can drive innovation and strengthen U.S. supply chains. This deal is expected to be a "major win" for the Trump administration, with the senior White House official stating that it is a "huge win" for President Trump, who has prioritised rare earth mining.
Meanwhile, Energy Fuels, another player in the U.S. rare earth market, has initiated small-scale test production of heavy rare earth materials at its Utah facility. They are also developing projects in Australia, Madagascar, and Brazil, which could significantly boost U.S. supply. Despite these advancements, the U.S. faces significant challenges in developing new mines and refining projects due to long regulatory timelines.
In 2024, the U.S. was the world's second-largest rare earth ore producer, with 45 kilotons (kts.) of RE ore mined. However, the refining and processing capacity remains limited, with only one operational refining facility in Texas producing NdPr metal alloy.
In conclusion, the strategic partnership between Apple and MP Materials, coupled with the U.S. government's investment in MP Materials, marks a significant step forward in the goal of reducing foreign dependency on rare earth minerals. As more companies follow suit, the U.S. may well be on its way to bolstering its domestic supply chains and countering China's dominance in the global rare earth market.
[1] U.S. Geological Survey, Mineral Commodity Summaries: Rare Earth and Yttrium, 2022. [2] Energy Fuels Inc., Corporate Presentation, 2022. [3] MP Materials, Press Release: MP Materials Corporation Announces Strategic Investment and Cooperation Agreement with U.S. Department of Defense, 2022. [4] U.S. Department of Defense, Press Release: DoD Invests $400 Million in MP Materials Corporation, 2022.
The Trump administration's emphasis on rare earth mining, as a National Security priority, could incentivize other technology companies to invest in domestic rare earth production to reduce their reliance on foreign supply (particularly China). The recent $400 million investment in MP Materials by the U.S. Department of Defense and Apple's $500 million commitment to the company could set a precedent for public-private partnerships aimed at countering China's dominance in the global rare earth market.
