Apple Invests $500 Million in US-Sourced Rare Earth Magnets to Strengthen Supply Chain
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Apple has announced a $500 million investment to secure a domestic supply of rare earth magnets, a critical component in many of its devices. The multi-year commitment will support US-based manufacturing of these magnets, reducing reliance on foreign sources—particularly China, which currently dominates the global rare earth market. The move aligns with Apple’s broader sustainability goals and efforts to bolster supply chain resilience amid geopolitical tensions and trade uncertainties.
Rare earth magnets, essential for iPhones, AirPods, and MacBooks, are made from elements like neodymium and praseodymium. By sourcing these materials domestically, Apple aims to minimize environmental impact and ensure ethical production standards. The company has not disclosed specific suppliers but emphasized partnerships with American manufacturers.
Industry analysts note that this investment could spur wider adoption of US-made tech components, potentially reshaping global supply chains. The Biden administration has also prioritized domestic critical mineral production, with recent policies incentivizing companies to reduce dependence on China. Apple’s decision underscores a growing trend among tech giants to localize key supply chains while addressing sustainability concerns.
