MP Materials (MP) shares jumped more than 8% following reports that Apple is planning a $500 million investment in the rare earth miner—just one week after the U.S. Department of Defense announced it would become the company’s largest shareholder. The developments mark a strategic shift in U.S. efforts to secure an independent domestic rare earth supply chain, reducing reliance on China.

Sources told Fox News Digital that Apple and MP Materials will also jointly build a new factory in Fort Worth, Texas, to manufacture magnets for Apple products and other electronics sold globally.

“This is a huge win for the president, who had the foresight to make this issue a priority,” a senior White House official told Fox News Digital. “Apple deserves a lot of credit for stepping up. It’s good for the country, good for American workers, and it’ll prove to be good business, too.” The official added: “Other companies should take notice.”

Apple’s investment follows the Defense Department’s announcement last week that it will invest $400 million in a newly created class of convertible preferred stock, along with a warrant to purchase additional shares of MP’s common stock. Combined, these instruments represent approximately 15% ownership of MP Materials on an as-converted and as-exercised basis, as of July 9, 2025.

MP Materials described the government’s investment as a “transformational public-private partnership,” aimed at accelerating the development of a fully domestic, end-to-end rare earth magnet supply chain. The 10-year agreement includes long-term commitments to support growth, resilience, and innovation across the rare earth sector.

Currently, China produces roughly 60% of the world’s critical mineral supply and controls up to 90% of the processing. With MP now positioned as a national strategic asset, the U.S. is taking a major step toward reshoring this vital industry, which is critical for technologies ranging from electric vehicles and smartphones to wind turbines and advanced defense systems.

This milestone also follows a recent trade breakthrough. Earlier this year, President Donald Trump signed an executive order to boost domestic mineral production, calling it “imperative” for national security. He later reached an agreement with Chinese President Xi to resume critical mineral trade after shipments had been halted amid escalating tariffs.