Apple and MP Materials have entered into a $500 million agreement to build a state-of-the-art factory that processes recycled rare earth elements, the iPhone-maker company said on Tuesday.
MP Materials, meanwhile, is the only fully-integrated rare earth producer in the United States, and will develop the magnets at its flagship Independence facility in Forth Worth, Texas, which Apple would be committed to buy over a period of at least four years.
The move is aimed at offsetting the rare earth shortage that has engulfed the world’s countries, including the US, after China restricted its rare earth magnets’ exports to the world this April. The new facility will help the US secure domestic supply of this critical material, strengthen its rare earth industry’s capabilities to capture more raw material, and advance environmental progress with innovative recycling methods.
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Tim Cook, CEO of Apple, said the company is committed to buying American-only rare earth magnets. “American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the U.S. economy,” he said, adding that “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”.
“We couldn’t be more excited about the future of American manufacturing, and we will continue to invest in the ingenuity, creativity, and innovative spirit of the American people,” Cook said.
Apple has pledged to invest more than $500 billion in the US over the next four years to accelerate American innovation, advance manufacturing, and devise next-generation recycling technologies.
Along with MP Materials, the two will also work together to establish an advanced rare earth recycling line in Mountain Pass, California, and develop new magnet materials and innovative processing technologies to improve magnet performance.
The Texas factory, meanwhile, will also incorporate a series of neodymium magnet manufacturing lines that are designed specifically for Apple products. It will also boost MP Materials’ overall production, and ship magnets across the US and the world.
The new recycling facility in California will also enable MP Materials to reprocess recycled rare earth feedstock from used electronics and post-industrial scrap for Apple products.
The agreement will also boost workforce, generate employment, and support research and development apart from building an entirely new pool of US talent and expertise in magnet manufacturing.
Apple initiated the use of recycled rare earth elements in consumer electronics, including its iPhones, with the iPhone 11’s Taptic Engine getting the first rare earth component in 2019. The company says it now uses 100 per cent recycled rare earth elements across Apple devices.
For nearly five years, Apple and MP Materials have been piloting advanced recycling technology that enables recycled rare earth magnets to be processed into material that meets Apple’s exacting standards for performance and design. The companies will continue to innovate together to improve magnet production, as well as end-of-life recovery.
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