MP will expand the capacity of its flagship magnetics facility in Fort Worth, Texas, and the two companies will develop jointly a supply line to process recycled materials at MP’s site in Mountain Pass, Calif. Shipments are expected to begin in 2027, but Apple will make a prepayment of $200 million as part of the deal.

Apple announced a $500 million deal with MP Materials for the development of a recycling facility and rare earth magnets to boost overall production on Tuesday.

Shares of MP Materials are surging in early trading Tuesday after Apple said it would invest $500 million in the owner of the U.S.’s only operational rare earths mine.