Apple–MP Materials Deal Underscores Strategic Value of Rare Earth Recycling and Boosts Spotlight on Local Contenders

By Paul Sanger - July 16, 2025

Apple–MP Materials Deal Strategic Value Rare Earth Recycling Local Contenders

In a move that cements the critical importance of rare earth supply chains, MP Materials saw its stock jump over 20% overnight after announcing a landmark $500 million partnership with Apple to develop a dedicated rare earth recycling line.

The deal, which includes long-term supply commitments and investment in MP’s flagship magnetics facility in Fort Worth, Texas, marks a significant escalation in the race to secure domestic sources of rare earth elements.

These materials—particularly neodymium and praseodymium (NdPr)—are vital for the permanent magnets used in everything from iPhones to electric vehicles and guided missile systems.

Key Agreement Features

Key Details of the Apple–MP Materials Agreement:

$500 million investment by Apple to establish a rare earth recycling capability at MP’s US facility.
MP to supply magnets for iPhones and other Apple devices, using recycled materials.
Production and shipments expected to commence in 2027, supporting hundreds of millions of Apple products.
The project builds on last week’s $400 million equity investment by the US Department of Defense, which made the federal government MP’s largest shareholder.

This new agreement positions MP Materials as the cornerstone of America’s rare earth magnet independence strategy—blending private sector innovation with public sector capital to develop a secure, circular supply chain within U.S. borders.

Local Flow-On Effect

For Australian companies in the rare earth and broader critical minerals sector, this news has far-reaching implications.

It highlights the surging demand for strategic materials and the growing willingness of major US buyers—both public and private—to invest at scale in secure, ethical, and traceable supply chains.

Several ASX-listed players could see positive sentiment and potential deal flow from these developments:

American Rare Earths (ASX: ARR) – With assets in Wyoming, ARR has direct exposure to the US supply chain. Its Halleck Creek project may now be on the radar of both government and private sector buyers.
Arafura Rare Earths (ASX: ARU) – Developer of the Nolans project in the NT with a focus on NdPr, the same critical elements in the MP-Apple deal. Arafura has also attracted support from Hyundai and the Australian Government.
Iluka Resources (ASX: ILU) – With its Eneabba rare earth refinery receiving federal support, Iluka could become a key processor in any allied supply chain.
Hastings Technology Metals (ASX: HAS) – Owner of the Yangibana project in WA and actively pursuing downstream partnerships.
Evolution Energy Minerals (ASX: EV1) and Syrah Resources (ASX: SYR) – While focused on graphite, both are active in U.S.-aligned battery supply chains and may benefit from broader strategic tailwinds.

Recycling’s Growing Role

Apple’s investment underscores the growing role of recycling in securing long-term supply resilience.

With pressure mounting on global mining supply, efficient and scalable urban mining and closed-loop systems are emerging as critical differentiators.

For Australian players exploring downstream processing or recycling partnerships—especially those with U.S. operations or customers—there’s a clear message: capital and demand are now aligned for strategic, secure, and sustainable supply chains.