Apple shops for $ 500 million magnets from home

In conflict with the Trump government for a possible iPhone production in the USA, Apple apparently does not want to give in-this seems to be too expensive and complex for the supply chain-optimized group. Internally, Apple does not apparently not believe that the relocation of production from China or India is a realistic option. Nevertheless, the company wants to invest more in the United States. On Tuesday, Apple announced a large -scale deal on components. It works, according to Apple In a messagefor neodymium magnets worth half a billion US dollars.

Material research with recycling magnets

Together with the special provider MP Materials, Apple plans to build a new type of recycling factory, which reduces magnetic materials from rare earths and then produces finished magnets. These occur in various Apple products-from MacBook to iPhone to Magsafe accessories.

According to Apple’s information, MP Materials is the only fully integrated manufacturer of rare earth in the United States. The production facility is in Fort Worth, Texas, another recycling factory is to be built in Mountain Pass, California. Apple also wants to develop new magnetic materials with MP Materials and “innovative processing technologies to increase magnetic performance”.

Contract runs over several years

According to the announcement, the $ 500 million should be issued “over several years”. It was initially unclear whether they are purchase contracts or production grants. In China, Apple sometimes pays its machines or financed them.

Apple has long only used “almost” magnets made of recycling material to avoid buying expensive new goods – according to your own statements, this is done for environmental protection reasons. For the first time in 2019, Apple had installed the iPhone 11 recycling magnets in the TAPTIC engine (vibration engine) and has increased the use since then. MP Materials should supply the entire Apple supply chain with its magnets, including the finisheders in China or India. The US government should like that. According to its own information, Apple wants to invest up to $ 500 billion in the United States over the next four years.