Apple has signed a rare earth magnet supply contract with MP Materials, a rare earth mining and processing company, to expand its supply chain in the United States, U.S. economic media, including CNBC, reported on the 15th.
Rare earth magnets play a crucial role in Apple devices, including the haptic engine that conveys vibrations and touches, as well as audio equipment and microphones.
MP Materials will send the rare earth materials and supplies processed in California to its Texas facility, where magnets will be produced for Apple. According to reports, shipments of magnets to Apple are expected to begin in 2027. However, the two companies did not provide specific details about the contract period.
This contract is related to former President Donald Trump's call for expanding supply chains within the United States. Trump has also targeted Apple and CEO Tim Cook in messages posted on social media. The former president demanded an expansion of production bases in the United States, particularly urging a break from supply chains dependent on China.
Apple has been relying on many components sourced from Asia, including China, but is recently pushing for diversification to other Asian countries like India and Vietnam. However, it has made relatively little investment in production bases within the United States. Rare earth magnets, too, have primarily been sourced from Asian regions, especially China.
China has maintained a de facto monopoly in rare earth magnet production over the past decade, which has posed a significant risk to global corporations, especially during escalating U.S.-China tensions. In April, after President Trump imposed new tariffs on China, the Chinese government enforced export controls on rare earth magnets, causing serious disruptions in the global magnet supply chain. Some corporations even halted factory operations.
Although negotiations between the U.S. and China have normalized the supply of rare earth magnets, many corporations are re-examining their dependency on China and are seeking new suppliers. Apple is also working to diversify its supply chain through this contract and has plans to secure a stable magnet supply chain in the long term.