Apple is investing $ 500 million in US material for iPhones

Apple is investing $ 500 million in US material for iPhones

Apple is investing $ 500 million in a partnership with the US company MP Materials, which works in the rare earth area. This decision is made against the background of President Donald Trump's pressure, who expects Apple to produce its popular smartphones in Germany.

Strategic partnership to strengthen the supply chain

As part of the partnership announced on Tuesday, Apple has undertaken to buy rare edemates directly from MP Materials to strengthen the US supply chain. In addition, Apple will work with the company on a new recycling line in California, in which recycled materials are reused to be used in Apple products.

Investment for the US operations

This initiative is part of a 500 billion dollar investment plan that Apple announced at the beginning of this year to expand its US operations. The Trump administration urges companies to bring their manufacturing technology back into the country and reduce the dependence on China. Rare earths are crucial for everything from smartphones to military aircraft and are an important negotiating instrument in the trade talks between Washington and Beijing. China is currently checking almost the entire processing of rare earth.

Focus on quality and innovation

"American innovation drives everything we do at Apple and we are proud to deepen our investments in the US economy," said Apple CEO Tim Cook in a press release. "Rare earth materials are crucial for the production of advanced technology, and this partnership will help to strengthen the supply of these important materials here in the United States."

Growth of employment and skilled workers

The MP material system in Fort Worth, Texas, will set up new production lines for magnets especially for Apple products. The first deliveries are expected to begin in 2027 and should support "hundreds of million Apple devices". Apple states that this expansion will create numerous new jobs. Both companies also plan training programs for the development of an American labor market for magnetic production.

The challenges of raw material availability

China has a factual monopoly on rare earths that are essential for everyday products from smartphones to wind turbines and LED lights. These materials are also crucial for batteries in electric vehicles as well as for MRI scanners and cancer therapies. Despite the misleading name, rare earths can be found everywhere in the earth's crust, but their extraction and processing are complex and expensive. China currently controls 92 % of global processing capacities.

Sustainability through recycling

While the business with MP Materials Apple could help to become popular with Trump, it is also in accordance with Apple's efforts to integrate more recycled materials into its products - a plan that was already in the works before Trump's office. The iPhone 16e, which came onto the market this year, contains, for example, 30 percent recycled materials. Apple announced that recycled rare earths are used in its main products, including in magnets that can be found in the latest iPhones, iPads, Apple Watches, MacBooks and Mac models.

Strengthen the American production industry

The Trump administration has exerted pressure on Apple and other tech giants to produce their products in the United States, instead of ranks on assembly systems and supply chains, which are mainly located in China, India and Vietnam. In a contribution to Truth Social in May, Trump said that Apple would expect her to manufacture her iPhones, which are sold in the USA.

Expansion of manufacturing competence in the USA

The cooperation between Apple and MP Materials also includes the development of the required pool of skilled workers for magnetic production. Experts have pointed out that the lack of highly specialized workers is one of the reasons why the shift in iPhone production to the USA is a major challenge. "The competence to produce each of the components must be built up over a long period of time," said David Marcotte, Senior Vice President in Kantar.

Trump should delight the obligation to invest in domestically procured raw materials because he sees Apple's earlier investment announcement as a victory in his efforts to strengthen American production. Apple is just one of many tech giants that have expanded their presence in the United States in recent months. Texas Instruments announced an investment of $ 60 billion in the United States in June, and Taiwanese chip manufacturer TSMC announced $ 100 billion in the USA in March. The leading AI chip manufacturer Nvidia also said in April that he would produce his supercomputers in the United States.