Apple has signed An agreement with MP Materialsa US mining company, to ensure the supply of magnets made of rare earths over the next few years. The company led by Tim Cook will invest 500 million dollars In this company with the purpose of eliminating its current dependence on Rare earth from China. However, the supply of rare land magnets of American origin will begin in 2027.
This strategic decision is Apple’s response to two needs. The most obvious is that those of Cupertino need to have access to rare earth magnets without being conditioned by The iron control that China currently exercises on the global supply chain of these chemical elements. In addition, its investment in MP Materials has been very well received by the administration of Donald Trump as part of the commitment acquired by Apple at the end of last February.
And is that on the 24th of that month the Cupertino announced that will invest 500,000 million dollars During the next four years in the US and will create 20,000 new jobs. In any case, this scenario invites us to ask us two questions. On the one hand it is important to identify why rare earth magnets are so important for Apple and other technology companies. And it is also crucial that we know how China has achieved dominate in such a forceful way the global supply chain of rare earths.
Rare earths are essential to make advanced technology
“Rare earth materials are fundamental to producing advanced technology, and our association with MP Materials will help strengthen the supply of these vital elements here, in the United States,” has declared Tim Cookthe Director General of Apple. Permanent magnets made with rare earths, such as neodymium or samarium-colto, are very attractive for electronic devices manufacturers because they have high magnetic force, great resistance to demagnetization and high thermal stability, among other remarkable qualities.
In fact, they are not essential only for the electronics industry; They also have a leading role in the sector that is dedicated to the manufacture of electric cars, in the aeronautical and in the advanced armament production industry. The problem for the US and its allies is that currently the rare earth supply chain It is almost completely controlled by China. This Asian country produces 70% of rare earths and controls 90% of the processing industry of these chemical elements.
Rare earth magnets are very attractive due to their high magnetic force, great resistance to demagnetization and high thermal stability
On April 4, just 24 hours after Donald Trump announced the taxes that he was going to apply to the importation of most products from abroad, The administration led by Xi Jinping responded. And he did it forcefully. In early December 2024 He chose to prohibit The export of some critical minerals to the US, among which were three essential metals for the chips industry: Gallium, Germanio and Antimony.
Shortly after the Chinese government added two more critical metals to its list of export restrictions: the Scandio and the Disposio. These chemical elements are probably less known than metals prohibited by China previously, such as Gallium or Germanio, but are at least as important as the latter because They have a fundamental role In the industries of integrated circuits, telecommunications and the manufacture of storage devices.
The ability to put pressure from China had not yet been extinguished. Just ten days later, on April 14, the Administration did not hesitate take another step forward With the purpose of putting in check, in addition to the industries that I just mentioned, those of electric cars, aeronautics and advanced armament. To achieve this, it effectively suspended, in addition to the export of the most valuable rare earths, that of high -power magnets that have a critical role in the industries that I have cited in this same paragraph.
This is the context in which MP Materials has erected as a crucial actor for the US. And this mining company is the owner of the only site in this country that contains some of the rare earths necessary to manufacture high -power industrial magnets. This is the reason why it has become A very valuable strategic resource For the country led by Donald Trump. The US plan pursues Develop your own supply chain of rare earths with the purpose of eliminating any dependence on the global market of these chemical elements.
Image | Daniel L. Lu
More information | Reuters
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