Yttrium Supply Crunch Deepens
Suppliers to U.S. aerospace and semiconductor companies are facing tightening shortages of key rare earth elements, particularly yttrium and scandium, according to industry officials. The constraints come weeks before an anticipated summit between President Donald Trump and Chinese President Xi Jinping in Beijing.
Although China eased some export curbs after imposing restrictions in April, shipments of certain niche rare earths to the United States have not meaningfully recovered. Chinese customs data show that just 17 tons of yttrium products were exported to the U.S. in the eight months following the controls, compared with 333 tons in the eight months prior.
Yttrium plays a critical role in high-temperature coatings used in jet engines and turbines. Without these coatings, engine components risk overheating and failure. Since concerns about supply first surfaced late last year, prices have surged roughly 60% and are now nearly 69 times higher than a year ago.
Executives at two North American coating manufacturers said production has been temporarily paused due to limited supplies. One firm has begun prioritizing larger engine-making customers while declining smaller or overseas orders. Another supplier in the value chain reportedly halted sales of yttrium-oxide-based products after exhausting inventories.
Scandium Constraints Threaten 5G Chip Output
Shortages of scandium, another rare earth element largely sourced from China, are also emerging as a concern. With global production amounting to only several dozen tons annually, scandium is essential in advanced semiconductor fabrication, aerospace alloys and fuel cell technologies.
According to Dylan Patel, founder and CEO of research firm SemiAnalysis, U.S. chipmakers rely on scandium components used in devices that power “essentially every 5G smartphone and base station.” Industry sources say companies are experiencing delays in receiving new export licenses from Chinese authorities and have sought assistance from Washington.
The United States currently has no domestic scandium production and limited alternative suppliers outside China. Analysts suggest existing stockpiles could last months rather than years, heightening risks to next-generation semiconductor manufacturing.
Strategic and Political Implications
A White House official said the administration is committed to securing access to critical minerals through negotiations with China and efforts to develop alternative supply chains. The issue is expected to be part of broader discussions during the upcoming Trump-Xi meeting.
“This is a watch item and a tangible example of how China is flexing its rare earth muscle,” said Kevin Michaels, managing director at aerospace consultancy AeroDynamic Advisory.
Engine makers including GE Aerospace, Pratt & Whitney, Honeywell, Boeing and Airbus have not reported immediate production disruptions, but remain cautious as spare-parts demand and aircraft output ramp up globally.
Industry observers warn that prolonged scarcity could strain aerospace supply chains already under pressure and complicate U.S. semiconductor production at a time of intensifying geopolitical competition over critical technologies.
