Fox Business News reported on Tuesday, citing multiple people familiar with the matter, thatappleThe company is expected to announce a $500 million commitment to MP Materials, the only U.S. operator of rare earth mines. Apple and MP Materials did not immediately respond to Reuters' request for comment.
Shares of Las Vegas-based MP Materials jumped 12.3% to $54.50 in premarket trading.
Last week, MP Materials struck a multibillion-dollar deal with the U.S. government to boost production of rare earth magnets and help chip away at China's dominance of the materials. Rare earth magnets are used in the manufacture of weapons, electric vehicles and many electronic products.
The Fox Business News report said the agreement includes plans for Apple to purchase U.S.-made rare earth magnets from MP Materials' facility in Texas.
MP Materials already produces mined and processed rare earths and said it expects to start commercial production of rare earth magnets at its Texas facility around the end of this year.
Fox Business News also noted that the companies will build an additional factory in Fort Worth, Texas, to produce magnets, and a new recycling plant in Pass Mountain, California.
Last week's deal with the U.S. Department of Defense included a price floor for rare earths, a move aimed at spurring investment in domestic mines and processing plants. Such investment has previously lagged, partly due to low prices set by China.
The U.S. Department of Defense has set price guarantees for the two most commonly used rare earths at nearly double current market levels.