Cupertino, July 16: Apple has signed a deal to bring a supply of rare earth magnets to the United States. China curbed the supply of rare earth elements (REE) due to trade tension with the US President Donald Trump. This year, the tariff war between the US and China led to strict trade measures and increased conflicts between the countries. 

Last month, US President Donald Trump said that China's President Xi Jinping agreed to let the rare earth minerals flow back to the US. Trump accused China of violating the Geneva agreement and ordered to curb the chip-design software along with other shipments as a response to China. Apple Rolls Out Hearing Test and Hearing Aid on AirPods Pro 2 and Sleep Apnea Notifications on Apple Watch to More Countries; Check Details.

Now, Apple has signed a USD 500 million deal with Pentagon-backed MP Materials, according to a report by Reuters, for the supply of rare earth magnets. The report said that Apple became the first company to ink a US supply agreement after China stopped the exports in early 2025. 

MP Materials, based in Las Vegas, has been backed by Apple, one of the largest tech companies in the world. Apple made this move after the Trump government said it would become the largest shareholder of the mining company MP Materials. As per the report, MP Materials considered merging with an Australian rival to survive. 

Apple - MP Materials USD 500 Million Deal for Rare Earth Magnet Supply 

Apple's USD 500 million deal with MP Materials will help it get a steady supply of rare earth magnets. With this, the tech giant would not have to rely on China to obtain materials. Analysts said that for Apple, spending money to support magnet production in the U.S. was a small price to pay compared to the bigger risk of losing access to these important parts in the future.

MP Materials signed a multi-billion-dollar deal with the US Department of Defence, which would see the Pentagon become the largest shareholder in the company. China stopped REE exports in March after a trade war with US President Donald Trump. Cyberattack Foiled: Google AI Agent ‘Big Sleep’ Helped Detect and Foil Imminent Cyberattack Before It Happened, Says CEO Sundar Pichai.

As part of a new deal, Apple will pay MP Materials USD 200 million in advance for magnets to be supplied starting in 2027. According to the companies, these magnets will be manufactured at MP's Fort Worth, Texas, facility using recycled materials from its Mountain Pass mining site in California.

(The above story first appeared on LatestLY on Jul 16, 2025 10:02 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).