Apple Inc. has struck a $500 million deal to buy rare-earth minerals from MP Materials Corp., the US producer that just last week secured backing from the Pentagon. The two companies will also work together to “establish a cutting-edge rare earth recycling line” in Mountain Pass, California, and develop novel magnet materials and innovative processing technologies to enhance magnet performance,” Apple said Tuesday in a statement. “American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the U.S. economy,” said Apple Chief Executive Officer Tim Cook. “Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States. MP shares gained 8.2% in pre-market trading. Apple’s stock was little changed Fox News reported some details on the supply deal earlier on Tuesday. The world’s dependence on China for rare-earth permanent magnets, tiny but powerful products that are used in everything from consumer tech, cars, wind turbines and fighter aircrafts, has become a flashpoint in the Asian nation’s trade war with the US. After the Trump administration imposed 145% tariffs on China, boasting that it had the upper hand, Beijing turned the tables by essentially shutting down exports of the critical component.

Full report : Apple signs a $500M deal to buy rare-earth minerals from US producer MP, which secured Pentagon backing last week, as it seeks to cut its reliance on China.