Yttrium Shortages Threaten Aerospace and Semiconductor Supply

China’s April export controls on yttrium and six other rare earths have tightened global availability, prompting price spikes and supply worries for aerospace, energy and semiconductor sectors.

Exporters now need Beijing-issued licenses; traders and an analyst report only small shipments cleared so far and long delivery delays. Although some measures were paused after high-level talks, April’s restrictions remain, leaving access uncertain without a wider U.S.–China agreement.

European yttrium oxide prices have surged—Argus data show a roughly 4,400% rise to about $270 per kilogram since January—while Chinese domestic prices sit near $7/kg. The market is opaque: estimates of stocks outside China range from one to 12 months of consumption, and some traders say their inventories have plunged.

Yttrium is used in specialty alloys and heat‑shield coatings for jet engines, protective coatings and insulators in semiconductors, and turbine blade protection in gas plants. Industry groups and producers say shortages would lengthen production, raise costs and could become a chokepoint, though immediate shutdowns are not yet widespread.

The U.S. currently imports nearly all its yttrium, about 93% directly from China. Domestic capacity is emerging: ReElement Technologies plans to produce yttrium oxide at up to 400 tons per year early next year, offering partial relief to strained supply chains.