Core Viewpoint - Apple has signed a $500 million deal with MP Materials to secure a supply of rare earth materials, aiming to reduce reliance on China and strengthen domestic production [1][4]. Group 1: Partnership Details - The multiyear deal involves Apple purchasing rare earth magnets from MP Materials' facility in Fort Worth, Texas, which is described as the only fully integrated rare earth producer in the U.S. [1][3]. - Apple and MP Materials will collaborate on developing a rare earth recycling plant in Mountain Pass, California, and work on new processing technologies to enhance magnet performance [3]. Group 2: Strategic Implications - This partnership is part of Apple's broader strategy to manufacture more products outside of China, which includes shifting production to India and Vietnam [10]. - The deal comes shortly after the U.S. Defense Department announced a $400 million investment in MP Materials, becoming its largest shareholder, indicating a growing focus on securing critical materials domestically [4]. Group 3: Market Context - Rare earth materials are crucial for advanced technology and military hardware, with China controlling up to 70% of the global supply and 90% of processing capacity [7]. - Apple's stock has seen a decline of 14% since the beginning of the year, partly due to uncertainties related to the U.S.-China tariff war [5].