[News] U.S. Backs MP Materials With Price Guarantees to Curb China’s Rare Earth Grip; Apple Locks In Supply

According to Reuters, the U.S. government is stepping up efforts to reduce reliance on China’s rare earths supply by introducing a separate, higher pricing system aimed at boosting domestic investment. As part of this initiative, the Department of Defense (DoD) will provide price guarantees to MP Materials—the nation’s sole rare earth mining company.

As noted in the report, the DoD has agreed to guarantee a minimum price of USD 110 per kilogram for neodymium-praseodymium (NdPr)—the two essential rare earth elements used in magnet production. If the global market price, currently around USD 60 and largely influenced by China, falls below that threshold, the DoD will cover the difference for MP Materials. This U.S.-set benchmark aims to bolster domestic production despite China’s lower pricing. Meanwhile, if prices rise above USD 110, the DoD will receive 30% of the additional profits, the report adds.

Last Thursday, the DoD reached an agreement with MP Materials that will make it the company’s largest shareholder, according to another Reuters report.

MP Expands Domestic Magnet Manufacturing Capacity

MP Materials already mines and processes rare earths, and the report notes that the company plans to launch commercial magnet production at its Texas facility by the end of the year. Initial output is expected to reach 1,000 metric tons annually, with a planned expansion to 3,000 tons. The report also states that MP intends to build a second rare earth magnet manufacturing facility in the U.S.

Apple Secures U.S. Rare Earth Supply Deal with MP

Global tech companies are racing to secure rare earth supplies. Notably, according to Reuters, Apple has signed a USD 500 million agreement with MP Materials for rare earth magnets. The deal makes Apple one of the first tech firms to establish a U.S.-based supply agreement following China’s export restrictions earlier this year. Under the agreement, Apple will make a USD 200 million advance payment to MP Materials for magnet deliveries scheduled to start in 2027, as the report notes

Read more

• [News] Rare Earth Rush: China’s June Exports Reportedly Hit Highest Level Since 2009
• [Insights] China’s Rare Earth Export Restrictions Sound Alarm for Global Tech Industry

(Photo credit: MP Materials)