The market opened mixed today with the S&P 500 inching higher and the Dow Jones Industrial Average nudging lower. One thing that seems a lot less mixed, however, is the market's enthusiasm for rare-earths producer MP Materials (MP 20.40%) stock. The company announced a partnership with Apple with respect to rare-earth magnets, driving the bulls to load up on shares.
As of 10:13 a.m. ET, shares of MP Materials are up 20.1%.
Image source: Getty Images.
The attraction these companies have for each other is even stronger due to a rare-earth magnet deal
Expanding a relationship that has lasted for nearly five years, MP Materials announced that it signed a long-term commitment with Apple -- a $500 million partnership -- to supply the tech company with magnets produced at a rare-earth magnet production facility that it's developing in Texas. MP Materials will source the magnets with recycled rare-earth feedstock from its production facility in California. The feedstock will be sourced from post-industrial and end-of-life magnets, marking a major milestone in both companies' long-standing efforts to create sustainable, domestic supply chains.
In addition, the two companies will partner to expedite innovation in technologies related to both magnet production and end-of-life recovery.
MP Materials expects shipments of rare-earth magnets to start in 2027.
Over the past five years, the two companies have explored advanced recycling technology of rare-earth magnets that Apple could use in its products.
Rare-earth magnets are critical materials used in components that are found in various products that Apple produces like smartphones, computers, wearables, and other electronics.
Should investors be drawn closer to MP Materials stock after this magnet deal?
The market's appetite for MP Materials was strong in the first half of 2025, and it remains strong into the second half of the year. With the support of the Department of Defense and now Apple, a lot of risk has been removed with MP Materials stock, but investors should continue to dig deeper into the company to see if an investment is right for them.
