By Reuters
Apple has signed a $500 million deal with MP Materials for rare earth magnets, mitigating supply risks after China curbed exports this year and representing a major coup for MP that sent its shares soaring by a fifth.
The backing from one of the world鈥檚 most valuable companies comes after MP, which operates the only U.S. rare earths mine, last week agreed to a multibillion-dollar deal with the U.S. Department of Defense that will see the Pentagon become its largest shareholder.
The Las Vegas-based company鈥檚 stock price has nearly doubled since the government deal was announced. It has had remarkable turnaround since last year when it contemplated merging with an Australian rival as profits plunged in what CEO Jim Litinsky called a 鈥渧ery frustrating鈥 pricing environment for rare earths.
The deal, announced on Tuesday, guarantees Apple a steady flow of rare earth magnets free from China – the world鈥檚 largest producer.
For Apple, the cost to support U.S. magnet production pales in comparison to the long