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India Today
22-07-2025
- Business
- India Today
Apple AirPods India production faces setback as China tightens rare earth material supply
Apple's plan to make AirPods in India has hit a speed bump, and it has to do with a key material that's mostly controlled by China. According to a report by Moneycontrol, the issue lies in the supply of dysprosium, a rare earth metal used in tiny magnets that help AirPods work the way they do. Foxconn, the company making these AirPods in India at its Telangana factory, has been struggling to get enough of this material. And it's not because of internal mismanagement. The problem is bigger, and it's political. China recently tightened export rules on dysprosium and other rare earth materials, and that's made things difficult for companies operating outside the making this situation more complicated is that it comes just after Foxconn moved more than 300 Chinese engineers out of its Indian facilities. So, the timing has made some people wonder whether this supply issue is a one-off hiccup or something more deliberate. Either way, it's got Foxconn concerned. As per Moneycontrol, the company has flagged the issue to the Telangana government and several central ministries, including the Ministry of Electronics and Information Technology (MeitY), the Department for Promotion of Industry and Internal Trade (DPIIT), and even the Prime Minister's Office (PMO). Everyone's aware now, but solving this might depend on how talks between India and China progress from that said, despite the trouble, Apple's AirPods production in India hasn't stopped entirely. The report further mentions that both Apple and Foxconn had foreseen some of these problems months in advance and managed to build a buffer. So, for now, they're somehow able to keep going. There's also word that Foxconn is working with the Indian and Chinese governments to get something called an End User Certificate, which is required by China before it can allow the export of such sensitive materials. Counterpoint Research's Neil Shah told Moneycontrol that the situation shows just how reliant the tech world still is on China for rare earth materials. And he's right. Dysprosium and other rare earth metals play a critical role in electronics. Without them, it's tough to maintain the same product of now, Foxconn's Indian unit contributes only a small share of Apple's global AirPods production. But it was seen as a key part of Apple's efforts to reduce its dependence on China. This supply roadblock gives an advantage to Apple's other partners, like Luxshare and Goertek, both of whom have production facilities in concern that this kind of disruption could hurt India's electronics manufacturing dreams in the long run, especially under the PLI scheme. If material shortages continue or worsen, it could affect pricing, timelines, and possibly even product features.- Ends
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Business Standard
22-07-2025
- Business
- Business Standard
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 New Delhi 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. 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.
Time of India
20-06-2025
- Automotive
- Time of India
Desi auto cos yet to get Beijing nod for magnets
No Indian auto component or vehicle company managed to get approval from the Chinese govt for procuring rare earth magnets so far, sources said. They added that there is also "no clarity as yet" on any timeline for a confirmed meeting with representatives of the Chinese govt, despite the intervention of Indian officials. The applications for sourcing magnets were filed mainly by auto component manufacturers, who provide fully-built sophisticated component assemblies such as speedometers, electric motors, e-axles, electric water pumps, automatic transmission kits, speakers, sensors and ignition coils (used in engines). The companies that applied include Uno Minda, Bosch, Mareli, TVS Group, Motherson Sumi and Sona Comstar. "There were no approvals so far, according to the latest assessment we carried through interactions with industry representatives," one of the sources told TOI. "The situation is grave, and there is now massive uncertainty regarding manufacturing schedules and factory output." The request for a meeting with Chinese representatives is being pursued not only by industry bodies - Auto Component Manufacturers Association (Acma) and Society of Indian Automobile Manufacturers (Siam) - but also by ministries, such as heavy industries, external affairs, and Commerce. Officials from major automobile companies like Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Bajaj Auto, and TVS are also pursuing the matter. The industry also had a meeting with top officials at the ministry of heavy industries earlier this week as govt looks at ways to navigate out of the current crisis. "However, not much headway was made so far," an official source said. Industry executives said the ministry onboarded Ernst & Young as a partner to work on the issue. The meeting also reviewed the preparation of some Indian companies working in the field of magnets. The auto industry requested local producers to give a firm timeline on supplies, if at all possible, emphasising that their production line is dependent on quick procurement. Both Acma and Siam prepared a list of delegates that they intend to rope in if a visit to China can be facilitated by the govt. Through a notification issued on April 4 this year, the Chinese govt imposed certain restrictions in the export permit system for medium and heavy rare earth metals, its alloys, magnets, and related products. To stop the diversion of magnets to defence and weapon requirements, China mandated that exporters must obtain a licence based on the provision of an End User Certificate (EUC), which would need approval from DGFT and the ministry of external affairs and also be endorsed by the Chinese Embassy in India. After this, the EUC needs to be sent to China for approvals - first from the provincial govt from where the exporter in China will produce and export and then from China's ministry of commerce.
Time of India
20-06-2025
- Automotive
- Time of India
Desi auto companies yet to get Beijing nod for magnets
Danny generated AI Image NEW DELHI: No Indian auto component or vehicle company managed to get approval from the Chinese govt for procuring rare earth magnets so far, sources said. They added that there is also "no clarity as yet" on any timeline for a confirmed meeting with representatives of the Chinese govt, despite the intervention of Indian officials. The applications for sourcing magnets were filed mainly by auto component manufacturers, who provide fully-built sophisticated component assemblies such as speedometers, electric motors, e-axles, electric water pumps, automatic transmission kits, speakers, sensors and ignition coils (used in engines). The companies that applied include Uno Minda, Bosch, Mareli, TVS Group, Motherson Sumi and Sona Comstar. "There were no approvals so far, according to the latest assessment we carried through interactions with industry representatives," one of the sources told TOI. "The situation is grave, and there is now massive uncertainty regarding manufacturing schedules and factory output." The request for a meeting with Chinese representatives is being pursued not only by industry bodies - Auto Component Manufacturers Association (Acma) and Society of Indian Automobile Manufacturers (Siam) - but also by ministries, such as heavy industries, external affairs, and Commerce. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Memperdagangkan CFD Emas dengan salah satu spread terendah? IC Markets Mendaftar Undo Officials from major automobile companies like Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Bajaj Auto, and TVS are also pursuing the matter. The industry also had a meeting with top officials at the ministry of heavy industries earlier this week as govt looks at ways to navigate out of the current crisis. "However, not much headway was made so far," an official source said. Industry executives said the ministry onboarded Ernst & Young as a partner to work on the issue. The meeting also reviewed the preparation of some Indian companies working in the field of magnets. The auto industry requested local producers to give a firm timeline on supplies, if at all possible, emphasising that their production line is dependent on quick procurement. Both Acma and Siam prepared a list of delegates that they intend to rope in if a visit to China can be facilitated by the govt. Through a notification issued on April 4 this year, the Chinese govt imposed certain restrictions in the export permit system for medium and heavy rare earth metals, its alloys, magnets, and related products. To stop the diversion of magnets to defence and weapon requirements, China mandated that exporters must obtain a licence based on the provision of an End User Certificate (EUC), which would need approval from DGFT and the ministry of external affairs and also be endorsed by the Chinese Embassy in India. After this, the EUC needs to be sent to China for approvals - first from the provincial govt from where the exporter in China will produce and export and then from China's ministry of commerce. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
16-06-2025
- Automotive
- Time of India
Government to 'facilitate' auto companies procure Chinese magnet
The government has stepped in to support the auto and component industry's efforts to procure rare earth magnets from China with companies submitting End User Certificate (EUC) to Beijing, certifying no diversion of the shipment towards defence or weapons production. The commerce department and the ministry of external affairs have been engaged in the process of seeking time for an interface of the Indian industry with representatives of the Chinese government. "We are mindful of the concerns of the industry, especially as manufacturing schedules are likely to be disrupted if the supplies do not resume in some time," one of the sources said. A senior government official said that commerce secretary Sunil Barthwal recently held consultations with auto sector representatives and over the next few weeks, a delegation of executives from industry bodies is expected to go to China, with the Indian embassy in Beijing facilitating the exercise. The government, however, wants to play the role of a "facilitator" in the process, clearly demarcating it from being seen as a G2G (government-to-government) negotiation. "The idea is to involve the respective stakeholders and ministries for a concerted effort to expedite the approval process. The industry has already submitted the requisite documents related to the matter." Local industry has argued it is working on developing capabilities, but it is seen to be a massive challenge. "Developing indigenous supplies and capabilities is crucial, but it's a complex process requiring large-scale investments. Also, mitigating challenges of radioactive materials during the extraction process is also a critical factor," said Alok Perti, former coal secretary and now a senior board advisor with B2B mining and metal industry body MMPI. "Providing viability gap funding like PLI schemes by the government, encouragement to undertake research with countries like Russia, Australia, is also relevant." Source said that auto industry bodies, the Society of Indian Automobile Manufacturers (Siam), that represents product companies as well as the Automotive Components Manufacturers Association (ACMA), have been carrying out direct interface with government on the matter, even while companies have submitted their petitions through the route mandated by the Chinese government. The applications have reached China, and companies are eagerly awaiting movement, officials of at least four large companies told TOI. The industry is hopeful of a "positive result" following the meetings that Chinese vice foreign minister Sun Weidong, who is on a two-day visit to India, has had with his Indian counterparts.
