China’s Rare Earth Export Restriction Impacts AirPods Production in India: Report

China’s restrictions on rare earth metal exports have now impacted the production of Apple’s AirPods at Foxconn’s plant in Kongara Kalan in Telangana, The Economic Times reported.

"There was indeed some slowdown in production at the Foxconn AirPods plant, but it seems to have improved now," said an industry official cited in the report. "The supply chain for the metal is a bit longer, but the company is managing the situation now."

Apple’s AirPods contain rare earth metals, including neodymium and dysprosium, among others. As per reports, Foxconn has raised the supply issue with the Telangana government. 

The company is seeking assistance to obtain the End User Certificate (EUC) attestation and certification, which confirms that the goods are not being misused or diverted. The state government, in turn, raised the issue with the promotion of the industry and the internal trade department. 

However, the report, citing an individual, stated that Foxconn received the EUC from the external affairs ministry and the Chinese embassy. Foxconn’s supplier submitted this certificate to the Chinese government for approval of dysprosium exports, but approval has been pending since. 

Foxconn, a subsidiary of the Taiwanese multinational company Hon Hai Technology Group, has numerous plants in the country that manufacture Apple’s consumer devices. It is also one of Apple's largest contract manufacturing partners worldwide. 

Also Read: China Throws a Wrench in India’s iPhone Ambitions

In April, China’s commerce ministry imposed restrictions on the export of multiple heavy rare-earth metals. They can now only be exported with proper licences and permissions. These metals include samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, as stated in a report by the Centre for Strategic and International Studies. 

These restrictions have been cited as a countermeasure to the harsh tariffs imposed on China by US President Donald Trump.