Apple will invest $500 million in rare earth mining operator MP Materials

According to Golden Finance, Fox Business News reported on Tuesday citing multiple sources familiar with the matter that Apple is expected to announce a commitment of $500 million to MP Materials, the only operator of rare earth mines in the United States. Apple and MP Materials have not immediately responded to Reuters' request for comment. Last week, MP Materials reached a multi billion dollar agreement with the US government aimed at increasing the production of rare earth magnets and helping to weaken China's dominant position in such materials. Rare earth magnets are used in the manufacture of weapons, electric vehicles, and many electronic products. Fox Business News reported that the agreement includes Apple's plan to purchase rare earth magnets made in the United States from MP Materials' factory in Texas. MP Materials is already producing rare earths that have been mined and processed, and expects to start commercial production of rare earth magnets at its Texas factory around the end of this year. Fox Business News also pointed out that the two companies will build another factory in Fort Worth, Texas for the production of magnets and a new recycling plant in Mountain Pass, California. The agreement reached with the US Department of Defense last week includes a price floor for rare earths, aimed at stimulating investment in domestic mines and processing plants. Previously, such investments have been lagging behind, partly due to the low prices set by China.