Can MP Materials' Apple Deal Redefine U.S. Magnet Supply Chains?

MP Materials MP announced a landmark long-term agreement to supply Apple AAPL with rare earth magnets manufactured in the United States entirely from recycled materials. The $500 million agreement marks a transformative step for MP, launching its recycling platform and scaling up its magnet production business.

MP Materials will produce the magnets at its Fort Worth, TX, facility (known as Independence) using recycled rare earth feedstock processed at its Mountain Pass site in California. The feedstock will be sourced from post-industrial and end-of-life magnets. This marks a major development in both MP Materials and Apple’s long-standing endeavors to create sustainable, domestic supply chains.

Apple and MP Materials have collaborated over the past five years to develop advanced recycling technology that enables recycled rare earth magnets to be processed into material that meets Apple’s rigorous standards. To deliver on its commitments, MP will construct a commercial-scale, dedicated recycling line at Mountain Pass, enabling the processing of a range of inputs, including magnet scrap and components recovered from end-of-life products.

MP Materials recently entered into a public-private partnership with the United States Department of Defense (DoD) to fast-track the development of a domestic rare earth magnet supply chain. Backed by the multibillion-dollar investment package and long-term commitments from DoD, and to fulfill this agreement with Apple, MP Materials will significantly expand the capacity of its Fort Worth magnetics facility. 

Magnet shipments are expected to begin in 2027 and will be ramped up to support hundreds of millions of Apple devices. 

Rare earth magnets are essential components in smartphones, computers, wearables and other electronics, as well as vehicles, robotics and energy systems. MP’s partnership with Apple not only strengthens its domestic supply but also elevates the global benchmark for sustainable and circular production in critical materials.

While MP focuses on recycled magnet production, peer Energy Fuels UUUU recently initiated the pilot-scale production of heavy rare earth element oxides at its White Mesa Mill in Utah. 

Energy Fuels acquired Base Resources Limited in October 2024, which gave it access to the promising Toliara Mineral Sand Project, boosting its potential as a key producer of titanium and zirconium minerals, alongside rare earth elements. Energy Fuels aims to transform the White Mesa Mill into a critical mineral hub, producing uranium, vanadium, rare earth elements and potentially medical radioisotopes. 
Energy Fuels recently received the final major regulatory approval to advance the Donald Rare Earth and Mineral Sand Project, a critical milestone in unlocking one of the world’s best near-term sources of 'light', 'mid' and 'heavy' rare earth oxides.

MP’s Price Performance, Valuation & Estimates

MP Materials shares have skyrocketed 305.2% so far this year compared with the industry’s 18.7% growth.

MP is trading at a forward 12-month price/sales multiple of 27.20X, a significant premium to the industry’s 1.24X. It has a Value Score of F.

The Zacks Consensus Estimate for MP Materials’ 2025 earnings is pegged at a loss of 42 cents per share. However, the bottom-line estimate for 2026 is pegged at earnings of 41 cents per share. The estimates for both 2025 and 2026 have moved up in the past 60 days, as shown below.

The company currently carries a Zacks Rank #3 (Hold). 

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This article originally published on Zacks Investment Research (zacks.com).

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