Ankara: Apple and miner firm MP Materials announced a significant investment of $500 million to develop a rare earth magnets recycling facility, aimed at enhancing the tech company's US operations. The collaboration marks an important step in bolstering the supply chain for rare earth materials within the United States.

According to Anadolu Agency, Apple will source rare earth magnets from its Fort Worth, Texas, factory as part of the agreement with MP Materials. The two companies plan to establish a new rare earth recycling line at Mountain Pass, California, with the intention of commencing magnet shipments by 2027.

MP Materials stated that they have been partnering with Apple for nearly five years on advanced recycling technology. This technology facilitates the processing of recycled rare earth magnets to meet Apple's stringent performance and design standards. The company aims to expand this technological partnership by creating a dedicated, commercial-scale recycling line at Mountain Pass. This facility will process various inputs, including magnet waste and components from end-of-life products.

The Fort Worth magnetics facility's capacity will be significantly expanded as part of MP Materials' public-private partnership with the U.S. Department of Defense. The expanded facility will support the production of magnets for hundreds of millions of Apple devices. Both companies will also work together to innovate and advance technologies in magnet production and end-of-life recovery.

Apple's CEO, Tim Cook, emphasized the importance of American innovation in Apple's operations, expressing pride in the company's deepening investment in the US economy. Cook highlighted the critical role of rare earth materials in advanced technology and the partnership's contribution to strengthening their supply within the United States.

Rare earth magnets are crucial components in a wide range of tech devices, from computers and mobile phones to automobiles and renewable energy sources. The US has been working to reduce its reliance on China, which dominates the global supply chain for rare earth metals. MP Materials operates the only rare earth mine in the US.

Earlier this year, Apple announced its intention to invest more than $500 billion in strengthening US manufacturing capabilities, including the development of a new artificial intelligence server plant in Texas.