Apple Takes First Step Toward iPhone Manufacturing in the U.S.

July 16, 2025, 9:48 am | Read time: 2 minutes

Apple is making a clear move to shift more production to the United States. The tech giant is investing $500 million in the American mining company MP Materials. This investment is part of a strategic realignment aimed at making Apple less dependent on Chinese raw material supplies.

Strategic Supply Chain for iPhone Production in the U.S.

As part of the partnership, Apple will source rare earth magnets manufactured in the U.S. from MP Materials. These magnets will come from the company’s plant in Texas. The aim is to strengthen the domestic supply chain and increasingly shift the production of its devices—especially iPhones—to U.S. soil.

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MP Materials already processes mined rare earths. The company also plans to start commercial magnet production at its Texas plant by the end of the year. Additionally, Apple and MP are working on another magnet production facility in Texas and a new recycling plant in Mountain Pass, California.

China’s Dominance in Rare Earths Under Pressure

Rare earths—comprising 17 chemical elements—are essential for the production of magnets. They are used in products such as electric motors and smartphones. Globally, China is the leading exporter of these resources. However, the trade conflict between Beijing and Washington has highlighted the U.S.’s dependency. In March, China suspended its rare earth exports following a dispute with then-U.S. President Donald Trump. Export permits to other regions were also tightened.

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Billion-Dollar Deal with the Pentagon to Secure Production

In another step to bolster domestic production, MP Materials signed a billion-dollar contract with the U.S. Department of Defense last week. The goal is to expand rare earth magnet production in the U.S.—a clear signal against China’s dominance in this sector.

The agreement with the U.S. government also includes a guaranteed price floor for rare earths. This measure is intended to make investments in domestic mines and processing facilities more attractive. In the past, U.S. companies struggled to compete with the significantly lower prices offered by Chinese suppliers.

With material from Reuters

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