REalloys’ $50M Ohio Facility Aims Domestic Rare Earth Magnet Production by 2027
Apple is exposed to rare earth magnet supply constraints as REalloys dedicates $50 million to the first US heavy rare earth metallization facility in Ohio, aiming for 2027 operational status. That facility could secure NdFeB magnet production domestically ahead of the 2027 US defense ban on Chinese-origin magnets.
1. Supply Chain Pressure
Apple relies on NdFeB magnets for iPhones, wearables and other devices and currently imports over 85% of its rare earth materials, while China controls 80–85% of the global magnet production chain.
2. REalloys Phase One Buildout
REalloys has dedicated $50 million to its Euclid, Ohio metallization facility, which will convert recycled magnets and mined feedstock into high-purity rare earth metals and alloys, with phase one slated to go live in 2027.
3. 2027 Defense Ban Impact
Starting January 1, 2027, Chinese-origin NdFeB magnets will be barred from US defense systems, forcing military and industrial users to secure fully traceable, domestically processed alternatives.
4. Implications for Apple
A stable domestic magnet supply chain could reduce Apple’s exposure to geopolitical risks and price volatility in Chinese processing, potentially lowering component costs and ensuring continuity of production.