Apple Inc. signed a $500 million deal with MP Materials for rare earth magnet supply, the company announced on Tuesday. The tech giant is mitigating supply risks as China curbed exports in retaliation for Trump’s tariffs. MP Materials stock skyrocketed 20% after the deal as it received the backing of the world’s richest and valuable company.
MP Materials is the only rare earth magnet supplier in the US and China’s curbs made Apple tap American businesses. The Las Vegas-based company had also signed a deal early this month with the US Department of Defense for rare earth magnet supplies. Pentagon became its largest stakeholder with the deal and its stock price nearly doubled in a week.
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MP Materials Stock Soars After Apple’s Rare Earth Magnet Deal
The company’s shares have surged by 255% year-to-date and are among the top-performing equities in the markets. An investment of $1,000 into MP stock in January would have turned into $3,550 in July 2025. Apple and the US Department of Defense have boosted MP Materials’ prospects with the rare earth magnet deals.
Apple does not want stoppages in critical components as its revenues depend on the supply and demand mechanism. The rare earth magnet deal with MP Materials allows Apple to gain full access to the metals in the homeland. “We’re in an era where executives are willing to pay a significant premium for a reliable supply chain. They don’t want stoppage,” said Gracelin Baskaran, Director of Critical Minerals Security Program at Center for Strategic and International Studies.
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However, Apple and MP Materials did not disclose the volume of rare earth magnets to be supplied every year. Neither firm reveals the length of the deal or how many years they plan to keep the agreement. “Rare earth materials are essential for making advanced technology. This partnership will help strengthen the supply of these vital materials here in the US,” said Apple CEO Tim Cook.