Consumer electronics giant Apple is expected to announce a $500 million investment in MP Materials, operator of the only U.S. rare earths mine, Fox Business reported on Tuesday, citing sources familiar with the deal.
Apple and MP Materials did not immediately respond to Reuters requests for comment.
Shares of Las Vegas-based MP Materials jumped 8% to $52.37 in premarket trading.
Rare earths are a group of 17 metals used to make magnets that turn power into motion. China halted exports in March as part of a trade spat with U.S. President Donald Trump that showed some signs of easing late last month, even as the broader tensions underscored demand for non-Chinese supply.
MP agreed to a multibillion-dollar deal last week with the U.S. Department of Defense to boost output of rare earth magnets and help loosen China's market control.
The Fox Business report said the agreement includes plans for Apple to purchase U.S.-made rare earth magnets from MP Materials' Texas facility. The deal would reflect the first supply deal for MP's magnets since that financial backstop agreement with Washington.
MP already produces mined and processed rare earths and has said it expects to start commercial magnet production in Texas facility by the end of this year.
The report also said the two companies would build another factory in Texas to produce magnets and a new recycling facility in Mountain Pass, California, near the company's existing mine.
Last week's deal with the U.S. government includes a price floor for rare earths, designed to spur investment in domestic mines and processing plants, which has been lagging partly due to low prices set in China.
