Yttrium shortages threaten aerospace and chip supply chains

Global supplies of yttrium have tightened sharply after China introduced export controls in April, creating licence bottlenecks and long delivery delays that are rippling through aerospace, energy and semiconductor sectors.

Yttrium, used in high-temperature thermal barrier coatings, specialty alloys for jet engines and as a protective coating and insulator in semiconductors, is predominantly sourced from China. Exports to the US slowed then stopped after the controls; shipments to other markets are down about 30%. Traders report inventories ranging widely — from as little as a few tonnes up to about a year’s consumption — reflecting an opaque market and localized stock shortages.

Prices have surged in some markets: European yttrium oxide quotes rose dramatically this year, while Chinese domestic prices have moved differently. Industry groups warn shortages could extend production times and raise costs, with larger producers at higher risk of chokepoints. Some firms report manageable impact so far, but others call the situation severe for critical processes.

Efforts to diversify supply are under way. The USGS estimates heavy US dependence on China, and new domestic capacity — including planned output from a US producer targeting several hundred tonnes per year — could begin easing pressure if scaled quickly. For now, companies are monitoring risks and seeking alternative sourcing and stock strategies.