Rare Earth Export Restrictions Threaten 21,000 Audio Electronics Jobs

Over 21,000 jobs in India's audio electronics sector are at risk following China's restrictions on rare earth metal exports. The industry body, ELCINA, reports that the strict export licensing on crucial elements like terbium and dysprosium is disrupting global supply chains, severely affecting India's hearables and wearables market.

The situation has led to an increased reliance on fully assembled imports of speaker modules from China, diverting from local component manufacturing. This trend threatens both direct and indirect employment in the sector, particularly in regions like Noida and South India. ELCINA emphasizes the rare earth metal-based magnets' criticality to the manufacturing process, with China dominating 90% of India's imports.

The pressure from China's monopoly has increased magnet prices and stressed India's need for alternative sources. Videotex, a prominent TV manufacturer, acknowledges the industry's heavy import reliance but continues efforts to maintain production continuity. Meanwhile, ELCINA urges the government to seek diplomatic solutions with China and promote localized production to counterbalance the supply chain upheaval.

(With inputs from agencies.)