On July 15, Apple announced its commitment to purchase rare earth magnets directly from MP Materials, the only company in the US with a fully integrated rare earth supply chain from mining to processing.
The move is aimed at strengthening Apple's supply chain in the United States and reducing its dependence on foreign sources, especially China, according to CNN .
The partnership includes not only direct purchases but also the establishment of a recycling and reuse line for rare earth materials in California to serve the production of Apple products.
This is part of a $500 billion investment that Apple announced earlier this year to expand operations and boost domestic manufacturing.
An excavator moves raw ore inside a pit at the Mountain Pass mine operated by MP Materials in California (Photo: Joe Buglewicz - Bloomberg).
Rare earths are essential materials for many modern electronics, from smartphones and computers to military jets, and have become a key factor in trade negotiations between the US and China.
Currently, China accounts for 92% of global rare earth production in the processing stage.
In a press release, Apple CEO Tim Cook emphasized: “We are proud to increase our investment in the United States. Rare earths are essential materials for advanced industrial development, this cooperation will increase the supply of critical materials in the United States."
Rare earth magnets are considered to be one of the most important and powerful permanent magnets and have many applications in science and technology (Photo: Getty).
While the name “rare earths” may be misleading, these materials are actually quite common in the Earth’s crust but are difficult to extract and process. They play a key role in everything from TVs and wind turbines to electric car batteries and MRI machines.
An MP Materials facility in Fort Worth, Texas, will develop a new magnet production line specifically for Apple products. The company expects the first shipments to begin in 2027, supporting hundreds of millions of Apple products.
The deal is also seen as a strategic move by Apple to meet the demands of the US government. Previously, in May, former President Trump posted on Trump Social, expressing his wish for iPhones to be manufactured in the United States, otherwise Apple would face a tax of at least 25%.
President Trump's attention-grabbing post on Trump Social mentions that Apple will have to pay 25% tax if they manufacture their products outside the US (Screenshot).
Partnering with MP Materials not only helps Apple avoid tax troubles, but also advances the company's efforts to incorporate recycled materials into its products.
Apple has been working on this plan since before Trump took office. Earlier this year, the iPhone 16e line was launched with 30% recycled content. Apple also said it is using recycled rare earths in many other products, including the latest iPhones, iPads, Apple Watches, MacBooks, and Macs.
Apple expects the expansion of domestic rare earth supply to create tens of millions of jobs and will work with MP Materials to train and develop human resources for magnet production in the United States.
Source: https://dantri.com.vn/khoa-hoc/nguyen-lieu-gi-khien-apple-dau-tu-500-trieu-usd-phuc-vu-san-xuat-iphone-20250724214226252.htm
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