[News] Foxconn’s AirPods Production in India Reportedly Hit by Rare Earth Shortage Amid China Export Curbs

A report from The Economic Times, citing sources, indicates that Foxconn’s production of Apple AirPods at its Telangana facility in India has been disrupted due to China’s restrictions on rare earth metal exports. However, Foxconn maintains that production remains unaffected, according to the report.

Sources cited in the report say Foxconn had sought assistance from the state government to obtain an end-user certificate (EUC). After securing the certificate, its supplier submitted it to the Chinese government for approval to export dysprosium, but the request is still pending. As the report notes, Foxconn expects the approval to come through by the end of this month. In the meantime, the company is reportedly using its existing stock of dysprosium to extend the production cycle until additional supplies arrive, the report adds, citing sources.

Apple’s AirPods contain rare earth elements such as neodymium and dysprosium. Neodymium, commonly used as a magnet, is sourced from China and other countries, as the report indicates. Foxconn began manufacturing AirPods at its India facility in April last year, the report adds.

As TechNews highlights, China holds about 40% of global rare earth reserves and accounts for nearly 70% of global production—particularly in heavy rare earth elements. These elements are vital to modern technologies and strategic sectors such as defense, aerospace, electronics, and electric vehicles (EVs).

Meanwhile, Outlook Planet reports that on July 21, India announced the discovery of significant rare earth deposits in Rajasthan’s Jalore and Barmer districts, with mining auctions expected to begin soon. However, the report also notes that India still lacks the capacity to refine these materials into high-purity finished products.

Earlier this month, another setback hit Foxconn’s Apple production plant in India. According to CNBC, the company has reportedly instructed hundreds of Chinese engineers to return home from its iPhone factories, posing a challenge to Apple’s manufacturing expansion in the country. As FirstPost notes, experts believe Taiwanese engineers could fill some of the vacated roles, but replacing Chinese-sourced equipment and materials would be far more difficult and could strain operations.

Read more

• [News] Rare Earth Rush: China’s June Exports Reportedly Hit Highest Level Since 2009
• [News] Trump Calls Out Apple for Shifting iPhone Production to India, Hinting at U.S. Expansion

(Photo credit: Foxconn)