Overview

• China imposed export restrictions in April on seven rare earth elements, including dysprosium, cutting off a key input for high-performance AirPods magnets
• Foxconn’s Telangana factory has reduced AirPods output after running low on dysprosium, though it continues production using existing inventories and contingency measures
• The company has formally raised the dysprosium shortfall with the Telangana government and notified central bodies such as MeitY, DPIIT and the Prime Minister’s Office
• India’s government is rolling out a ₹1,345 crore scheme to jump-start local magnet manufacturing and lessen dependence on foreign rare-earth imports
• Prolonged disruptions could benefit Chinese contract assemblers Luxshare and Goertek by shifting more AirPods orders back to their facilities