Yttrium Shortages Threaten Aerospace and Chip Supply Chains

China's export controls on yttrium, introduced in April and still partly in force, have squeezed global supplies and pushed buyers into a scramble for material.
Licensing rules and small, delayed shipments mean US imports have effectively halted and exports to other markets are down roughly 30%. Traders report widely varying inventories—estimates range from about one to 12 months of consumption—and some dealers say stocks have fallen precipitously.
European yttrium oxide prices have surged roughly 4,400% to about $270/kg, while domestic Chinese prices remain far lower, illustrating market segmentation and trading frictions.
Yttrium is critical in specialty alloys and high-temperature coatings for jet engines, protective and insulating layers in semiconductor tools, and thermal barriers on turbine blades. Aerospace and chip industry groups warn shortages will raise costs and could lengthen production cycles, though immediate shutdowns appear unlikely at most firms.
Companies and utilities are monitoring supply and pursuing diversification; some report manageable impacts so far. US dependence is acute—about 93% of imports are derived from Chinese sources—prompting efforts to build domestic output. ReElement Technologies plans to begin producing roughly 200 tonnes per year by December, scaling toward 400 tonnes within months as part of broader supply-chain responses.