01:10 PM EDT, 07/15/2025 (MT Newswires) -- MP Materials ( MP ) shares surged intraday Tuesday after Apple ( AAPL ) agreed to buy rare earth magnets from the company under a $500-million multiyear partnership deal.

MP Materials ( MP ) will supply Apple ( AAPL ) with rare earth magnets produced at its Fort Worth, Texas, facility, the companies said in separate statements. The collaboration will also see MP Materials ( MP ) constructing a recycling line in Mountain Pass, California.

Rare earth magnets are used in smartphones, computers and other electronics, as well as in vehicles, robotics, and energy systems. Shares of MP Materials ( MP ) were up nearly 25% in Tuesday trading, while Apple ( AAPL ) rose 0.9%.

MP Materials ( MP ) said it expects to begin magnet shipments in 2027 and eventually ramp it up to support "hundreds of millions of Apple ( AAPL ) devices."

"Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the (US)," Apple ( AAPL ) Chief Executive Tim Cook said.

Apple ( AAPL ) said its commitment is part of its plan to spend more than $500 billion in the US, including for an artificial intelligence server factory in Texas.

MP Materials ( MP ) said it will "significantly" expand the capacity of its Fort Worth facility.

Last week, MP Materials ( MP ) outlined a plan to construct a rare-earth magnet manufacturing facility in the US as part of a partnership with the Department of Defense, which will become the largest shareholder in the company.

Price: 210.92, Change: +2.30, Percent Change: +1.10