Latest news with #Pentagon
West Australian
12 minutes ago
- Business
- West Australian
Apple to buy rare earths from Gina Rinehart and Pentagon-backed US producer MP Materials
Tech giant Apple has struck a $US500 million ($767m) deal to buy rare earth minerals from Gina Rinehart-backed MP Materials, the US producer that just last week secured backing from the Pentagon. The two companies will build a factory in Texas, with neodymium magnet manufacturing lines tailored for Apple products, the iPhone maker said overnight Tuesday in a statement. Apple said the spending on rare earths is part of its earlier pledge to invest more than $US500b in the US over the next four years. Shares of MP Materials surged as much as 18 per cent in New York to the highest intraday price since April 2022. Mrs Rinehart has an 8.5 per cent stake in Las Vegas-based MP Materials, which along with Perth-headquartered Lynas Rare Earths is the only rare earths producer of note with operations beyond Chinese borders. She also holds 8.2 per cent of Lynas' register. The world's dependence on China for rare earths permanent magnets that are essential for consumer tech, cars, wind turbines and fighter aircrafts, has become a flash point in the Asian nation's trade war with the US. After the Trump administration imposed 145 per cemt tariffs on China, boasting that it had the upper hand, Beijing turned the tables by essentially shutting down exports of the critical component. MP Materials operates the sole US rare earths mine at Mountain Pass in California. 'Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States,' Apple chief executive Tim Cook said in the statement. The increased production will support dozens of new manufacturing and R&D jobs, Apple said. The two companies will also work together to establish a rare earths recycling line in Mountain Pass and develop novel magnet materials and innovative processing technologies to enhance magnet performance, according to the statement. That facility will allow MP Materials to take in recycled rare earth feedstock and use it in Apple products. 'This collaboration deepens our vertical integration, strengthens supply chain resilience, and reinforces America's industrial capacity at a pivotal moment,' MP Materials CEO James Litinsky said in a separate statement. Magnet shipments from the MP Materials facility in Fort Worth, Texas are expected to begin in 2027 and ramp up to support hundreds of millions of Apple devices, the Las Vegas-based firm said. Investor euphoria over the deal flowed through to trade in Australia, with Lynas up 1.5 per cent to $10.17 amid a broad decline across the rest of the ASX200. Iluka Resources — which is building a rare earths processing plant near Eneabba — also shot up 4 per cent to $4.87. China curbs on rare earths have reverberated across global supply chains — Ford Motor and Suzuki Motor idled some production. Elon Musk said shortages were hurting his robotics business. And governments rushed to secure the few suppliers outside of China. Signs have emerged in recent weeks that the US and China are beginning to deliver on promises made in trade talks held in Geneva and London in the past two months. China agreed to resume shipments of rare earths — with exports surging in June — while the Trump administration has reversed some restrictions on technology exports to China, including some semiconductors from Nvidia Corp. and Advanced Micro Devices Inc. Still, in its biggest move yet to push back against China's weaponisation of rare earths, the Pentagon took a $US400m stake in MP last week to secure supplies of magnets critical for military and other applications. The deal came with $US1 billion in financing from JPMorgan Chase & Co. and Goldman Sachs to fund a major new plant. While the export halt boosted prices and sparked fears of shortages, over the longer run western producers like MP Materials and Lynas have struggled to turn a profit due to weak prices and oversupply. Bloomberg
The Hill
31 minutes ago
- Business
- The Hill
These 12 Republicans derailed House crypto legislation
A dozen hardline Republicans on Tuesday derailed a raft of crypto legislation headed for a vote on the House floor, briefly throwing the three digital asset bills into limbo as GOP leadership scrambled to bring its caucus back together. The House failed to pass a procedural vote to allow the chamber to move forward with consideration of the three crypto bills, as well as legislation to fund the Pentagon for the next fiscal year. The crypto measures represent a key priority for President Trump and GOP leaders, who have vowed to get the long-sought digital asset legislation across the finish line. The GENIUS Act, which seeks to create a regulatory framework for stablecoins, is poised to become law if it can clear the House and make it to Trump's desk. The bill passed the Senate last month with support from more than a dozen Democrats. The second piece of legislation, the Digital Asset Market Clarity Act, aims to provide regulatory rules for the broader crypto market, splitting up oversight between two financial regulators. It faces a more uncertain future, as the Senate prepares to introduce its own version of the market structure bill. The third measure is the Anti-CBDC Surveillance State Act, which would block the Federal Reserve from issuing a central bank digital currency (CBDC). However, its companion bill has received little traction in the upper chamber. While House Majority Leader Steve Scalise (R-La.) initially supported the procedural vote, he changed his vote to 'no' as a procedural move to allow the chamber to vote on the measure again at a later date. Trump announced late Tuesday that he had reached a deal with most of the lawmakers who torpedoed the initial vote, saying he met with 11 of the 12 members and they had agreed to vote in favor of the measure the next morning. Here are the twelve GOP lawmakers who opposed the procedural vote: Rep. Anna Paulina Luna (Fla.) Luna was one of several House Republicans who said they were concerned about the potential for a 'backdoor' in the legislation that could allow for the creation of a CBDC. 'There was a piece of legislation that would've been voted on today that would have allowed a backdoor to create a central back digital currency,' Luna wrote on X. 'I support crypto but I do not support CBDC's.' 'I was part of a group that was able to block it,' she continued. 'Again, I am pro-crypto but cannot allow for any backdoor or loose language that would allow for a CBDC.' While the anti-CBDC measure would bar the creation of a CBDC, it appears that the lawmakers were largely focused on the GENIUS Act, which is most likely to become law out of the three bills. Rep. Scott Perry (Pa.) Perry similarly told The Hill on Tuesday that he was 'against anything that will potentially allow the creation of a central bank digital currency.' Rep. Chip Roy (Texas) Roy cited concerns about a CBDC, as well as other aspects of the Digital Asset Market Clarity Act, also known simply as the CLARITY Act. 'We get back into town, and they had this stuff in the rule that we had some concerns with, like … the Senate version of the Genius Act that we think leaves some room for some concern with respect to the central bank digital currency, and that there not be a hard ban on that,' he told The Hill. 'We had some other things in our version of the bill, with respect to CLARITY, which deals with market structure, things that we think are critically important,' Roy added. 'We feel like we need to be dealing with all of this at once.' Rep. Victoria Spartz (Ind.) Spartz said she opposed the measure because Speaker Mike Johnson (R-La.) blocked efforts by her colleagues to put forward an amendment addressing their CBDC concerns. 'Just as I objected to having Queen Nancy & King Kevin I feel the same about King Mike,' Spartz wrote on X. Rep. Michael Cloud (Texas) Cloud pointed to Rep. Warren Davidson's (R-Ohio) lengthy post on X laying out his concerns with the crypto bills, writing, 'Let's fix these issues – then pass it.' Davidson, who ultimately supported the procedural measure Tuesday, suggested that a standalone anti-CBDC bill doesn't have a path to the 60 votes required in the Senate. 'Next week's process is designed to ultimately fail – on all but passing GENIUS without amendment (the Senate's stablecoin bill),' he wrote. 'Without the CBDC ban, CBDC delivery architecture would be in place, and nothing would protect self-custody. For this reason, I will oppose the GENIUS Act.' Rep. Eli Crane (Ariz.) Crane reposted Luna's message on X, adding, 'Completely agree. I also voted no.' Rep. Marjorie Taylor Greene (Ga.) Greene similarly argued that the GENIUS Act 'lays the groundwork for a layered' CBDC, underscoring that the bill does not expressly ban such digital tokens. 'The GENIUS Act does not follow President Trump's executive order because it does not ban a CBDC,' she added, referring to a January order from the president on digital assets. 'House Leadership did not allow any amendments banning a CBDC. This should NOT be tolerated.' Rep. Tim Burchett (Tenn.) Burchett explained his reasoning for voting down the procedural measure in a video posted to X, suggesting lawmakers 'need to negotiate just a little bit.' 'People will say, 'Oh, Burchett, you killed the crypto bill,'' he said. 'But in reality, I kept the crypto bill alive because if it had gone to the floor in the form it's in, it would have died. And we need to negotiate just a little bit. Go a little slower, we get there a little faster.' Rep. Andy Biggs (Ariz.) Like Greene, Biggs argued that the GENIUS Act 'creates a framework for a layered' CBDC and fails to guarantee self-custody, or the right to hold and manage digital assets for oneself. 'House Leadership must allow an open amendment process so Members can freely debate and improve the bill,' he wrote on X.
Yahoo
an hour ago
- Business
- Yahoo
MP Materials spikes 30% after inking $500 million rare-earth deal with Apple
MP Materials surged 30% on July 15 on news that it had secured a partnership with Apple. The tech giant is doubling down on US manufacturing with a $500 million commitment to MP. This comes just after the rare-earth miner announced a major deal with the Pentagon. The move: MP Materials surged as much as 30% on Tuesday. Shares hit a high of $62.87 The stock is up 290% year-to-date. The chart: Why: On Tuesday, MP Materials announced a $500 million partnership with one of the tech sector's biggest names, supplying Apple with rare-earth magnets from its US mine. As the owner of the only operational rare-earth mine in the US, MP Materials is in a unique position in a highly important supply chain. "Magnet shipments are expected to begin in 2027 and ramp up to support hundreds of millions of Apple devices," the company said. "MP Materials and Apple will also innovate together to accelerate technological advancements in magnet production, as well as end-of-life recovery." It's the latest rally for MP Materials stock in just the last week. On July 10, shares surged on news that the US Department of Defense agreed to purchase $400 million of its preferred shares, making it the company's largest shareholder. Now, its partnership with Apple has cemented its role as a supplier to the private sector. "Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States," stated Apple CEO Tim Cook. Why it means: MP Materials has gone from being a little-known mining company to the center of a highly important supply chain in very little time. In less than a month, it's announced major deals with both public and private sector clients. Now, as the company teams up with Apple to create a rare-earth recycling line in Mountain Pass, California, it is well-positioned to establish itself as the tech sector's primary supplier of an essential component, one that companies need to keep building popular electronics, including smartphones, energy systems, and robotic devices. Read the original article on Business Insider
Business Times
an hour ago
- Business
- Business Times
Apple to buy US$500 million rare earths from Pentagon-backed US producer MP
[SAN FRANCISCO] Apple has struck a US$500 million deal to buy rare-earth minerals from MP Materials, the US producer that just last week secured backing from the Pentagon. The two companies will build a factory in Texas, with neodymium magnet manufacturing lines tailored for Apple products, the iPhone maker said on Tuesday (Jul 15) in a statement. Apple said the spending on rare-earth minerals is part of its earlier pledge to invest more than US$500 billion in the US over the next four years. The world's dependence on China for rare-earth permanent magnets that are essential for consumer tech, cars, wind turbines and fighter aircrafts, has become a flash point in the nation's trade war with the US. After the Trump administration imposed 145 per cent tariffs on China, boasting that it had the upper hand, Beijing turned the tables by essentially shutting down exports of the critical component. MP Materials operates the sole US rare-earth mine at Mountain Pass in California. '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 chief executive officer Tim Cook said in the statement. The increased production will support dozens of new manufacturing and R&D jobs, Apple said. The two companies will also work together to establish a rare earth recycling line in Mountain Pass, California, and develop novel magnet materials and innovative processing technologies to enhance magnet performance, according to the statement. That facility will allow MP Materials to take in recycled rare earth feedstock and use it in Apple products. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'This collaboration deepens our vertical integration, strengthens supply chain resilience, and reinforces America's industrial capacity at a pivotal moment,' MP Materials CEO James Litinsky said in a separate statement Tuesday. Magnet shipments from the MP Materials facility in Fort Worth, Texas are expected to begin in 2027 and ramp up to support hundreds of millions of Apple devices, the Las Vegas-based firm said. China curbs have reverberated across global supply chains: Ford Motor and Suzuki Motor Corp. idled some production. Elon Musk said shortages were hurting his robotics business. And governments rushed to secure the few suppliers outside of China. Signs have emerged in recent weeks that the US and China are beginning to deliver on promises made in trade talks held in Geneva and London in the past two months. China agreed to resume shipments of rare earths – with exports surging in June – while the Trump administration has reversed some restrictions on technology exports to China, including some semiconductors from Nvidia and Advanced Micro Devices. Still, in its biggest move yet to push back against China's weaponisation of rare earths, the Pentagon took a US$400 million stake in MP last week to secure supplies of magnets critical for military and other applications. The deal came with US$1 billion in financing from JPMorgan Chase . and Goldman Sachs Group to fund a major new plant. While the export halt boosted prices and sparked fears of shortages, over the longer run western producers like MP Materials and Australia's Lynas rare earths have struggled to turn a profit due to weak prices and oversupply. BLOOMBERG
RTÉ News
an hour ago
- Politics
- RTÉ News
US military to remove 2,000 National Guard troops from Los Angeles
US Defence Secretary Pete Hegseth has ordered the removal of half of the 4,000 National Guard troops who had been sent to Los Angeles to protect federal property and personnel during a spate of protests last month, the Pentagon said. Pentagon spokesperson Sean Parnell said the decision was due to the success of the mission. "Thanks to our troops who stepped up to answer the call, the lawlessness in Los Angeles is subsiding," Mr Parnell said in a statement. "As such, the Secretary has ordered the release of 2,000 California National Guardsmen from the federal protection mission," he added. US President Donald Trump deployed the California National Guard troops to Los Angeles in June, against the wishes of Democratic Governor Gavin Newsom, to quell protests triggered by immigration raids on workplaces by Immigration and Customs Enforcement agents. The Republican president also sent about 700 Marines. Despite legal challenges, a US appeals court let Mr Trump retain control of California's National Guard. However, his decision to send troops into Los Angeles prompted a national debate about the use of the military on US soil inflamed political tension in the country's second-most-populous city. The Pentagon has defended the deployment, saying safeguarding ICE agents ensures they can do their jobs. Even after the withdrawal of those military personnel from Los Angeles, 2,000 National Guard troops will remain in the city along with the roughly 700 Marines. Los Angeles Mayor Karen Bass, who has complained that military force was unnecessary and damaging to the local economy, said popular opposition contributed to the withdrawal. Protesters regularly appear at immigration raids in the Los Angeles area, demonstrating their opposition to the government's force. "This happened because the people of Los Angeles stood united and stood strong. We organised peaceful protests, we came together at rallies, we took the Mr Trump administration to court - all of this led to today's retreat," Ms Bass said. She referred to a lawsuit the city joined that led to an order from a federal judge barring immigration officers from detaining people based solely on their race or for speaking Spanish. The troops in Los Angeles are authorised to detain people who pose a threat to federal personnel or property, but only until police can arrest them. Military officials are not allowed to carry out arrests themselves. Mr Trump has vowed to deport millions of people in the country illegally and has executed raids at work sites including farms that were largely exempted from enforcement during his first term. The administration has faced dozens of lawsuits across the country challenging its tactics. Mr Trump has increasingly turned to the military in his immigration crackdown. In addition to sending troops to Los Angeles, thousands of active duty troops have been eployed to the border with Mexico and the Pentagon has created military zones in the border area. The zones are intended to allow the Mr Trump administration to use troops to detain migrants without invoking the 1807 Insurrection Act that empowers a president to deploy the US military to suppress events such as civil disorder.
