A report from the Electronics Industries Association of India (Elcina) has indicated that 21,000 jobs in India's audio electronics sector could be jeopardized due to China's tightening of rare earth export regulations. In April, China put additional regulations in place surrounding 'license' requirement on key rare earth elements such as terbium and dysprosium, which are integral in creating Neodymium-Iron-Boron (NdFeB) magnets used in a variety of applications like wearables, hearables, and speakers.
The Elcina report stated that this regulatory change has created runoff repercussions regarding supply chain. It has severely affected a fast-growing audio electronics market in India, importing pre-manufactured speaker modules again from China, and undoing useful momentum India has realized in component manufacturing.
According to various sources, India currently imports nearly all of its NdFeB magnets, 90% of these are coming from China. Prices are increasing dramatically and alternatives from Japan, USA and EU are more than a dollar per kilogram more expensive, which has put an immense strain on manufacturers. For example, Videotex recognises this challenge, but it said their production is stable for the time being, whilst working on alternatives.
"Rare earth-based magnets are critical in TV manufacturing, particularly for speakers due to their compact size and high performance. However, we are working closely with our suppliers to ensure sufficient stock for the upcoming season," said Arjun Bajaj, Director of Videotex.
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