AirPods production hit at Foxconn T'gana plant due to rare earth shortage

While Foxconn has stated that production remains unaffected, news reports citing sources indicated that the company has approached the Telangana government to flag the supply issue

Shortage of dysprosium, a rare earth element, has led to the disruption in the production of Apple’s AirPods at Foxconn’s Telangana plant, after China imposed restrictions on the export of rare earth metals, The Economic Times reported.

 

While Apple supplier, Foxconn, has said that there is no disruption to production, the news report, citing a source, mentioned that the company has reached out to the Telangana government, highlighting the supply concerns.

 

Among other rare earth elements, the AirPods also contain dysprosium and neodymium. Neodymium is mined in China and elsewhere and is used as a magnet.

 

The state government has reportedly raised the supply issue with the Department for Promotion of Industry and Internal Trade (DPIIT), adding that Foxconn is seeking the state government's help to obtain the certification and attestation of the End User Certificate (EUC) by central ministries. 

The End User Certificate verifies who will use the goods and their intended purpose, especially when the items are likely to be misused or diverted.

 

After Foxconn received the EUC from the Ministry of External Affairs (MEA) and the Chinese embassy, Foxconn’s supplier submitted it to the Chinese government, seeking approval for dysprosium exports. However, the approval is still pending, and once that is done, the rare earth metal will be supplied to the company, the report said.

 

The company is expecting to receive approval by the end of this month. The prescribed time frame for the approval ranges between 45-50 days from the date of the application for approval.

 

Citing an industry official, the report added that the company did witness some slowdown in production at Foxconn’s AirPods plant, adding that it seems to have improved now. 

 

Rare earth export restrictions 

Seven categories of medium and heavy rare earth metals were put on the export control list by China earlier in April this year, after US President Donald Trump threatened tariffs. These seven metals include- samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. 

A PTI report stated that the Ministry of Heavy Industries is planning to launch a subsidy scheme worth ₹1,345 crore to promote domestic manufacturing of rare earth magnets.

 

China recalls techies from India 

Earlier on July 11, news agency PTI reported that China recalled some 300 tech workers from the manufacturing plant in India. Following which the government sources claimed that Apple is looking at alternatives to handle issues related to the return of these Chinese workers.