New chapter: Apple and the Pentagon are betting on U.S. magnets
On July 15, 2025, the market slammed its jaw shut. MP Materials (NYSE: MP) shares ripped up nearly 28% on the back of news that looks like a script for an industrial blockbuster: Apple is investing $500 million in its U.S. rare-earth magnet supply chain, and the Department of Defense is becoming the company’s largest shareholder. These aren’t just deals – they’re a strategy that could reshape the global market for critical materials.
Investors reacted instantly. Trading volume on the stock topped 34 million, and the price soared to $62 a share, hitting its highest since the beginning of the year. But what’s behind the headlines?
What did Apple get – and why MP Materials?
Apple has made no secret of its ambitions to localize production. By signing a multi-year contract with MP Materials, the company has secured a supply of “American-made” rare-earth magnets that will be used in the motors of iPhones, Macs and other devices.
Interestingly, part of the supply will be formed from recycled materials at MP’s existing facility in Mountain Pass, California. The rest will come from a new facility in Texas, where the company is building an advanced “10X Facility.” Volumes? Up to 10,000 tons per year. That’s two to three times what the entire U.S. industry consumes today.
For Apple, accustomed to geopolitical turbulence, such a contract is a shield against supply instability from China. For MP, it is unequivocal recognition of its status as a key supplier in a critical segment.
The second wave: the Pentagon is entering MP Materials’ equity
Less than a week before the Apple deal was announced, the U.S. Department of Defense made its own move: a $400 million investment and another $150 million in the form of a loan. As a result of the transaction, the government now owns 15% of MP Materials – the largest stake of any shareholder.
No wonder, because rare-earth magnets are used not only in smartphones, but also in controlled weapons, radars, and drones. The U.S. is in dire need of independence from the supply of China, which controls more than 80% of the world’s production of these elements.
MP Materials is the only U.S. company with a full cycle of rare earth processing in the country. It is now becoming not just a contractor, but a strategic defense resource.
Why investors are reacting so strongly
Strengthening the fundamentals is only one facet. The other is the long-term effect. With partners like Apple and the Pentagon, MP gets guaranteed demand for years to come, which means the risk of volatility that often spooks investors in commodity stocks is reduced. In addition, with the global trend toward decarbonization and electrification, demand for rare earth materials is only growing. MP is positioning itself as “America’s answer to Chinese dominance,” and judging by recent news reports, that answer is sounding more and more confident.
By the way, if you are looking not only for short-term ideas but also for stable sources of income, we recommend taking a look at our TOP US dividend stocks for 2025. The selection includes reliable companies with attractive yields, strong financial positions, and interest from large investors. This is an excellent opportunity for those who are building a diversified portfolio amid a volatile market.
MP Materials: From Abandoned Mine to Strategic Asset for the United States
MP Materials (NYSE: MP) is not just a raw materials company, but a strategic player that has become a symbol of the revival of a critically important industry in the United States. Founded in 2017 on the ruins of its bankrupt predecessors, the company acquired the abandoned Mountain Pass rare earth deposit in California, once the largest source of rare earths outside of China.
Today, MP is the only vertically integrated producer of these materials in the country, controlling the entire technology cycle from mining to the production of high-precision magnets that are vital to the defense, aerospace, and technology industries. In a world where 90% of the rare earth market is still controlled by China, MP Materials is becoming a critical link in the new US geo-economic architecture designed to ensure technological sovereignty and industrial security.
