MP Materials Corp (NYSE:MP) shares are rising Tuesday after the company signed a long-term agreement to supply Apple Inc (NASDAQ:AAPL).
What To Know: MP Materials entered into a long-term partnership under which it will provide Apple with rare earth magnets made from 100% recycled materials, manufactured in the U.S.
MP Materials will supply the iPhone maker with magnets produced at its Independence facility in Texas with recycled feedstock that will be processed at its Mountain Pass location. The feedstock will be sourced from post-industrial and end-of-life magnets.
MP will also build a commercial-scale recycling line dedicated to Apple at Mountain Pass and significantly expand the capacity of its Texas facility. The two companies have been working on advanced recycling technology through a technical collaboration for close to five years in an effort to turn rare earth magnets into processed material that meets Apple’s performance and design standards.
“We are proud to partner with Apple to launch MP’s recycling platform and scale up our magnetics business,” said James Litinsky, founder, chairman and CEO of MP Materials.
“This collaboration deepens our vertical integration, strengthens supply chain resilience, and reinforces America’s industrial capacity at a pivotal moment.”
MP Materials said it will also work with Apple on innovation aimed at accelerating tech advancements in magnet production and end-of-life recovery. Magnet shipments intended to support hundreds of millions of Apple devices are expected to begin in 2027.
MP Materials entered into a public-private partnership with the Department of Defense last week aimed at building out an end-to-end U.S. rare earth magnet supply chain to reduce foreign dependency.
MP Price Action: MP Materials shares were up 10.8% at $53.75 at the time of publication Tuesday, according to Benzinga Pro.
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Photo: courtesy of MP Materials.
