Rare earth magnets from Fort Worth
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Rare earth magnets produced in Fort Worth will be the crux of a $500 million, multiyear deal between Apple and a Las Vegas-based rare earth producer.
Why it matters: Rare earth magnets are used in tech like wind turbines, electric vehicles, defense systems and electronics.
- China dominates rare earths, but Apple and the U.S. Department of Defense are among a growing number of entities trying to shift their supply chains to the U.S.
Driving the news: MP Materials announced plans this week to supply Apple with magnets manufactured in Fort Worth from entirely recycled feedstock.
- The companies also intend to establish a rare earth recycling line in Mountain Pass, Calif.
State of play: Few rare earth magnets get recycled at the end of their life, though it is more common for Chinese processors to recycle production scraps.
- But, China isn't timid about restricting the supply during times of conflict.
Zoom in: MP Materials says its Mountain Pass facility will create feedstock using waste from the magnet production process and end-of-life magnets.
- The company's Fort Worth facility will turn the feedstock into magnets for hundreds of millions of Apple devices, per MP Materials.
What's next: The companies plan to build out the Fort Worth factory with manufacturing lines for Apple products.
- MP Materials says it will start shipping the magnets in 2027.
Zoom out: The company also has a multibillion-dollar partnership to supply the Department of Defense with magnets.