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Pressured By Tensions With China, Apple Teams Up With MP Materials, Bets On Rare Earths To Strengthen American Industry
Apple announced a 500 million USD investment in an agreement with the American rare earth producer MP Materials. The move comes amid pressure from President Donald Trump for the popular iPhones to be manufactured on American soil.
As part of the contract revealed on May 15, Apple will purchase magnets directly from MP Materials. This measure consolidates the supply chain in the United States.
In addition to the purchase, the partnership includes the establishment of a recycling line in California. This unit will focus on reusing materials for use in the company’s products. The project is part of a broader plan by Apple announced earlier this year, which aims to expand operations in the U.S.
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“No one will make us change the Pix,” says Lula after the US report.
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Lula responds directly to Trump and says that Pix is from Brazil and will not change under pressure from anyone, after a report from the United States pointed out the Brazilian payment system as an American trade barrier.
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Amazon has just announced a new fee on all deliveries, and your online purchases will become more expensive starting April 17, including for those buying from the United States here in Brazil.
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He sold his share for R$ 4 thousand, saw the company become a giant worth R$ 19 trillion, and missed the opportunity of a lifetime.
“Rare earth materials are essential for creating advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States,” said Apple CEO Tim Cook.
MP Materials reported that its facility in Fort Worth, Texas, will create new manufacturing lines for magnets specifically for Apple products. Deliveries are expected to begin in 2027 and will serve “hundreds of millions of Apple devices,” according to the company itself.
The Pentagon Placed A Big Bet To Ensure The United States Has Autonomy, Reducing Vulnerability To China.
The Department of Defense invested 400 million USD in MP Materials, becoming the largest shareholder by acquiring a 15% stake. The agreement comes with a financing of 1 billion USD from banks like JPMorgan Chase and Goldman Sachs, funds that will be used to build a new magnet factory.
The venture, named the 10X Facility, is expected to be operational by 2028, with a capacity to produce 10,000 metric tons per year. Moreover, the Pentagon has committed to purchasing neodymium-praseodymium magnets at a minimum price of 110 USD per kilogram, ensuring a market for production.
This move strengthens the U.S. position in a strategic sector that has suffered for years from near-total dependence on China.
End Of Dependence? Apple Teams Up With The U.S. In A 500 Million USD Battle Against China For Rare Earths
Rare earths are essential inputs for the production of smartphones, wind turbines, electric vehicles, TVs, medical equipment, and even combat aircraft. However, China practically controls all processing of these materials, accounting for 92% of global production at this stage of the supply chain.
Although found in much of the Earth’s crust, the minerals are expensive and complex to extract, and China concentrates the expertise and necessary equipment to process them at scale.
Chinese supremacy has already been used as a political weapon. When the Trump administration imposed tariffs of 145% on China, Beijing responded by restricting rare earth exports, which paralyzed production lines of automakers like Ford and Suzuki. During that time, Elon Musk stated that the shortage of these minerals was compromising his robotics business.
This scenario led Washington to accelerate investments in domestic suppliers. MP Materials, with support from both Apple and the Pentagon, has become a key player in this restructuring.
Trump Puts Apple At The Center Of The Strategic Dispute
Meanwhile, Trump publicly pressured Apple again in May, writing on Truth Social:
“I have long told Tim Cook of Apple that I expect your iPhones sold in the United States to be manufactured and built in the United States, not in India or anywhere else. If that is not the case, Apple will have to pay a tariff of at least 25% to the U.S.”
Therefore, the alignment between Apple, MP Materials, and the Pentagon shows that the United States is moving to reduce dependence on China in a vital sector. On one side, Apple secures inputs for its devices and enhances its green agenda. Additionally, the U.S. government strengthens its autonomy in defense and innovation.
What do you think about this technological power involving the two superpowers?
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