China, which dominates global yttrium production, imposed controls in April that require exporters to obtain government licenses for overseas shipments. The measures, enacted in response to U.S. tariffs, also covered six other rare earths and immediately slowed the flow of yttrium to international buyers. While Beijing has paused some restrictions since a high-stakes meeting last month between U.S. President Donald Trump and Chinese President Xi Jinping, the April controls remain in place. Traders and analysts say the unresolved dispute has left U.S. industries exposed and scrambling to locate alternative supplies.
Four rare earth traders told Reuters that licenses are being issued only for small batches and that delays in China have made it exceedingly difficult to move yttrium out of the country. Argus analyst Ellie Saklatvla said the export rules have triggered “a scramble for yttrium” that has intensified over the past several months. European yttrium oxide prices have surged an astonishing 4,400% since January, reaching $270 per kilogram, while Chinese domestic prices—though far lower at around $7 per kilogram—have risen 16%. The diverging price trends reflect how global buyers are competing for limited stocks outside China.
The Aerospace Industries Association warned that yttrium is indispensable for the world’s most advanced jet engines, where it is used in specialty alloys and heat-shield coatings. Dak Hardwick, the group’s vice president for international affairs, said rising costs and mounting shortages demonstrate how dangerously reliant U.S. manufacturers have become on Chinese imports. Semiconductor manufacturers echoed the concern, with two industry sources telling Reuters that yttrium is a “9 out of 10” in severity because it protects and insulates critical components. Richard Thurston, CEO of Great Lakes Semiconductor, said shortages will lengthen production timelines and reduce efficiency even if immediate shutdowns are unlikely.
Energy companies are also monitoring the situation closely. Yttrium coatings help protect turbine blades in gas plants from extreme temperatures, and disruptions could complicate maintenance cycles. Mitsubishi Heavy said it has not yet encountered problems, while Siemens Energy CEO Christian Bruch acknowledged the risk and said his company is working to diversify away from Chinese materials, though such efforts will take time. Other firms, including GE Vernova, did not comment.
Customs data through September show that China’s yttrium exports to the U.S. slowed early this year and halted completely after the April restrictions, Reuters reported. Shipments to the rest of the world are down roughly 30%. Several traders said they fear rerouting supplies to U.S. buyers could provoke Chinese retaliation, leaving them vulnerable to further export constraints. Estimates of stockpiles outside China vary widely, ranging from one month to a year of supply, according to six industry sources interviewed by Reuters. One trader said their reserves had collapsed from 200 tons to just five, while another said they were completely out of stock.
Despite rising prices, aerospace manufacturers say production has not yet been disrupted. Gulfstream Aerospace President Mark Burns told Reuters the company has only “perimeter” exposure to yttrium and has seen no impact on deliveries. But analysts warn that if shortages persist, they could become a major chokepoint across multiple industries.
The U.S. Geological Survey reported that the United States imports all of its yttrium, with 93% coming directly from China and the remainder originating as material processed in China. That dependency may soon begin to shift. Indiana-based ReElement Technologies plans to begin domestic production of yttrium oxide in December, aiming for 200 tons per year initially and doubling that by March. The U.S. imported an estimated 470 tons in 2024, meaning even rapid expansion will take time to offset the growing supply gap.
Until Washington and Beijing reach a lasting agreement, manufacturers dependent on yttrium face a future shaped by shortages, steep prices and the strategic weight of a rare earth metal now caught in the center of a geopolitical contest.
