Rare Earth Material : How China is Controlling Tech Supply Chain

Picture Credit: Pinterest Epic Tech Tips

Apple is making a major push to strengthen its U.S. manufacturing footprint, announcing a $500 million partnership with MP Materials, a rare earths company based in Fort Worth, Texas. The deal comes as President Donald Trump intensifies pressure on tech giants to bring supply chains and production back to American soil.

As part of the agreement, Apple will purchase rare earth magnets directly from MP Materials to power components in its devices and will also collaborate on a new recycling facility in California aimed at recovering rare earths from old devices.

“Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States,” said Apple CEO Tim Cook.

MP Materials will manufacture custom magnets for Apple, with shipments starting in 2027. The materials are expected to be used in hundreds of millions of devices, including iPhones, iPads, MacBooks, and Apple Watches. The expansion is set to create new jobs and develop talent in magnet manufacturing, a niche expertise long dominated by China.

China currently controls 92% of the rare earth processing market, making it a strategic vulnerability for global tech companies. This move aims to reduce Apple’s dependence on foreign sources while aligning with its sustainability goals.

The investment is part of Apple’s broader $500 billion plan to expand its U.S. operations. While it may not mean iPhones will be built entirely in America, it signals Apple’s effort to appease trade tensions and adapt to growing demand for ethical sourcing and domestic resilience.

The deal also arrives amid growing competition: TSMC, Texas Instruments, and Nvidia have all announced massive U.S. expansions in recent months. Apple’s rare earths bet could be a win-win for business and geopolitics in an increasingly complex tech landscape.