Production of Apple AirPods at Foxconn’s Telangana plant has encountered challenges due to a shortage of dysprosium, a rare earth metal.

This supply issue results from China’s restrictions on rare earth exports.

The Foxconn Interconnect Technology (FIT) factory, located near Hyderabad, started producing AirPods in April 2024.

This move was part of Apple’s strategy to diversify its manufacturing operations outside of China.

Dysprosium is a key component in AirPods, essential for magnets and temperature-resistant equipment, and is primarily sourced from China.

Foxconn alerted the Telangana government, which escalated the matter to the Department for Promotion of Industry and Internal Trade (DPIIT), as the company awaits Chinese export approval despite having processed an end-user certificate.

A Foxconn spokesperson said production continues using existing inventory, although a brief slowdown occurred according to an industry source.

China’s April move to tighten exports of rare earths like dysprosium has disrupted global electronics and auto manufacturing amid US-China trade tensions.

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