Apple is putting up $500 million to help MP Materials launch a rare-earth metals recycling facility, the Dow Jones giant said Tuesday. MP stock jumped early Tuesday after Fox Business broke the story about the Apple deal, MP's second transformative announcement in the past week as the U.S. works to wean itself off rare-earth dependence on China.
Early reports that Apple was investing $500 million in MP Materials are unfounded. Still, release of the details didn't dampen investor enthusiasm. Apple and MP revealed that they've been working on advanced recycling technology for nearly five years. MP said it had struck "a long-term agreement to supply Apple with rare earth magnets manufactured in the United States from 100 percent recycled materials."
Mountain Pass Recycling Line
MP Materials said its work with Apple "enables recycled rare earth magnets to be processed into material that meets Apple's exacting standards for performance and design." Building on the collaboration with Apple, MP said it will construct a "commercial-scale" recycling line at its Mountain Pass rare-earth site, adjacent to its processing plant and mine.
The plant will enable "the processing of a range of inputs, including magnet scrap and components recovered from end-of-life products."
Shipments to Apple are expected to begin in 2027. Apple said the $500 million commitment is part of its overall commitment to spend $500 billion in the U.S. over the next four years.
MP Materials Gets China Boost
The Department of Defense announced a $400 million investment in MP Materials last Thursday, becoming its largest investor, along with a commitment to buy neodymium-praseodymium oxide for $110 per kilogram, nearly double the market price. MP also secured a $150 million loan from the Pentagon to expand separation of heavy rare earths at MP's Mountain Pass mine in California and $1 billion in financing as it builds a second magnet facility that will serve defense, as well as commercial, customers.
The flurry of deals comes after China's rare-earth export controls nearly caused a widespread shutdown of U.S. auto production in May. MP shares fell back after China confirmed a relaxation of rare-earth exports in late June, which took pressure off of U.S. manufacturers.
But Beijing hasn't given up its rare-earths leverage, limiting export licenses to six months. Further, export licenses reportedly aren't available for military uses such as Lockheed Martin's F-35.
MP has said it's on track to begin producing automotive-grade, sintered neodymium-iron-boron (NdFeB) magnets at its first rare-earth magnet plant in Texas later this year. General Motors is MP's foundational customer, having put up financing for the plant in 2021.
MP Stock Jumps Again
MP jumped 17.3% to 56.90 in early Tuesday stock market action. Apple rose 0.7%.
MP vaulted 50.6% to 45.23 on Thursday amid news of the federal government's investment. MP stock first cleared a 29.72 buy point from a cup base on June 13.
Shares have skyrocketed from a low of 10.02 last August.
