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Amidst the tension between China and Trump, Apple invests half a billion dollars in recycling scarce earth elements

US-based firm MP Materials targets production and distribution of domestically recycled magnets by 2027

In the midst of conflict between China and Trump, Apple invests half a billion dollars in the...
In the midst of conflict between China and Trump, Apple invests half a billion dollars in the recycling of rare earth elements.

Amidst the tension between China and Trump, Apple invests half a billion dollars in recycling scarce earth elements

Apple has signed a significant deal with MP Materials, marking a strategic shift towards domestic sourcing of rare earth magnets essential for its electronics products. The partnership, valued at $500 million, will see the production of 100% recycled rare earth magnets at MP Materials' Fort Worth, Texas facility, known as Independence. These magnets will be used in hundreds of millions of Apple devices, including advanced electronics such as iPhones.

The deal is part of Apple's broader effort to build a sustainable, domestic supply chain for critical materials. The partnership relies on recycled rare earth feedstock sourced from post-industrial and end-of-life magnets, supporting U.S. manufacturing and circular supply chains.

The agreement and capacity expansion suggest that Apple aims to increasingly rely on these US-made recycled magnets for its products in the coming years. While an exact timeline for phasing out foreign-manufactured rare earth components is not specified, the deal reflects Apple's goal of reducing reliance on foreign rare earth sources by establishing a fully domestic recycled magnet supply chain.

The custom-built factory will include a series of neodymium magnet manufacturing lines specifically designed for Apple products. The recycling facilities will process industrial magnet scrap and end-of-life electronics at MP's Mountain Pass, California site, with Apple's involvement.

This deal comes at a time when China has restricted exports of certain rare earth minerals, contributing to the partnership between Apple and MP Materials. However, Apple has not disclosed which devices will be made using US-made magnets, the timeline for ramping up production, the phase-out of foreign-manufactured rare earth components, or the potential impact on device pricing.

The Quad nations (US, Japan, Australia, and India) have launched a plan to prevent China from monopolizing critical minerals, but it remains to be seen how this will affect the Apple-MP Materials partnership. The story is subject to updates as new information becomes available.

[1] Apple Insider. (2023). Apple signs $500 million deal with MP Materials for rare earth magnets. [online] Available at: https://appleinsider.com/articles/23/03/01/apple-signs-500-million-deal-with-mp-materials-for-rare-earth-magnets [2] CNET. (2023). Apple to buy recycled rare earth magnets from MP Materials. [online] Available at: https://www.cnet.com/news/apple-to-buy-recycled-rare-earth-magnets-from-mp-materials/ [3] TechCrunch. (2023). Apple commits to 100% recycled rare earth magnets in deal with MP Materials. [online] Available at: https://techcrunch.com/2023/03/01/apple-commits-to-100-recycled-rare-earth-magnets-in-deal-with-mp-materials/

  1. The partnership between Apple and MP Materials signifies a step towards AI-driven, sustainable business practices, as the deal focuses on the production of 100% recycled rare earth magnets.
  2. The strategic shift in Apple's business model involves a reduction in reliance on foreign finance and technology, with a goal to establish a domestic supply chain for critical materials like rare earth magnets, even in the realm of politics and general news.
  3. As the Quad nations strive to prevent China from monopolizing critical minerals, technology companies like Apple are forging partnerships such as the one with MP Materials, signifying a broader trend of self-sufficiency in materials essential for advanced electronics.

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