Rare Earth Metal has become a major issue in the global market. Saying the world, a big problem is standing for all big autos and electronics companies. For this reason, all the big economy of the world is now starting work on the production of rare economy in their areas. Recently, Apple, one of the world's largest companies, has entered into an agreement with MP materials for Rare Earth Magnet. The agreement has reduced the supply risk after China curbing exports this year and this is a major achievement for MP, which has seen a boom in its shares.
The support from Apple has received when MP, which operates the US only rare meaning Mine, agreed to an billion dollar agreement with the US Defense Department last week, under which the Pentagon would become its biggest share holder. The price of the stock of this company based on Las Vegas has almost doubled since the announcement of the government deal. Last year, when the company considered the merger with an Australian rival, there has been a lot of change in the company since then. From this CEO Jim Littsky informed the rare meaning of the rare meaning magnets in view of the "highly disappointing" pricing environment.
The deal has been announced on Tuesday and from this Apple will continue to get continuous supply of rare meaning magnets from China, the world's largest producer. Analysts stated that for Apple, the cost of supporting American Magnet production is negligible compared to that long -rated risk, due to which it can lose perfectly access to important components. Gracelin Baskaran, director of the important mineral safety program at the Center for Strategic and International Studies, said that we are in a period where the authorities are ready to pay a good price for a reliable supply chain. They do not want to interrupt.
China banned the export of Rare Earth metals in April in response to US President Donald Trump's tariff. Although the US and China reached an agreement in June, there has been a large extent to resolve the controversy related to rare economy metals, but the comprehensive trade tension is pointing to the demand for non-sugar supply. Under this agreement, Apple will make an advance payment of $ 200 million to MP for the supply of megates starting in 2027. Both companies have neither revealed the duration of this deal nor the volume of the megates to be provided.
The agreement provides for megates produced from recycled materials, which is in line with the Longator Target to eliminate its dependence on Apple's mining industry. They will be produced at the plant in Fort Worth, Texas in MP, which will be used in MP's Mountain Pass, Recycled Materials at Mining Campus in California. Apple CEO Tim Cook said in a statement that Air Earth metals are necessary to create advance technology, and this partnership will help strengthen the supply of these important substances in the United States.
Bob O'Donnell, president of the market research firm Technalis Research, said that this step of Apple is "completely appropriate", as the company requires a large amount of rare meaning magnants for its components. He said that in addition, focusing on an American suppliers will make the Apple situation even better in Washington. Apple said that the deal is part of its four-year investment commitment in US $ 500 million.
Recently, Apple has faced Trump's threats about not making an iPhone in America. But many analysts say that it is not possible to create an iPhone in America, given labor cost and current smartphone supply. Apple did not disclose which devices it would use megates. MP said that this deal will supply magnets for millions of devices, which will be an important part of any Apple product line.
