Apple (AAPL) Signs $500M Rare Earth Magnet Deal With MP Materials

Apple Inc. (NASDAQ:AAPL) ranks among the best magic formula stocks to invest in. Apple Inc. (NASDAQ:AAPL) and MP Materials have inked a $500 million agreement for rare earth magnets, reducing supply risks following China’s export restrictions this year. Announced on July 15, the agreement ensures Apple will have a consistent supply of rare earth magnets free from China.

Apple (AAPL) Signs $500M Rare Earth Magnet Deal With MP Materials

The long-term risk that Apple Inc. (NASDAQ:AAPL) would lose access to the essential components entirely outweighs the expense of supporting US magnet manufacture, according to analysts. Under the deal, Apple will pay MP $200 million in advance for a supply of magnets that will start in 2027.

Notably, the deal calls for magnets to be made from recycled materials, which is consistent with Apple’s long-standing objective of reducing its dependency on the mining sector. They will be made in MP’s facility in Fort Worth, Texas, using magnets that were recycled from MP’s mining complex in Mountain Pass, California.

Apple Inc. (NASDAQ:AAPL) is a global tech company that is known for its core offerings, the iPhone, Mac, and Apple Watch, as well as its expansive service portfolio, which includes iCloud and Apple Music.

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Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

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