Global supplies of yttrium are starting to run low, and with China restricting its own exports, prices are skyrocketing for key rare earths like yttrium oxide.
Yttrium is critical to numerous industries, including aerospace, energy, and semiconductors. It is used in specialized alloys for aircraft engines and coatings that protect against extremely high temperatures. Dwindling supplies are raising fears of serious shortages, while prices have already seen significant increases.
China is home to some 70 percent of global production and as much as 90 percent of the processing of these key materials, according to a Reuters report cited by the Do Rzeczy news portal.
Despite negotiations with the U.S. leading to an easing of some Chinese restrictions, yttrium exports still require a special license, which is difficult and time-consuming to obtain.
“So far, licenses issued only cover small shipments, and material deliveries are still significantly delayed,” says Ellie Saklatvli, an analyst at Argus.
European prices for yttrium oxide, used to produce thermal insulation coatings, have risen 4,400% since January, reaching $270 per kilogram. In China, yttrium costs just $7 per kilogram, but even there, prices have risen 16 percent, although they have started to decline slightly in recent weeks.
The American Aerospace Industries Association (AIA) is warning that yttrium is a vital element in the production of cutting-edge jet engines.
“Our supply chain is heavily dependent on imports from China. This dependence is driving up costs in the face of growing shortages,” says Dak Hardwick, AIA’s vice president of international affairs.
For semiconductors, yttrium acts as a protective coating and insulator, with one industry source rating the “threat level at nine out of 10.” While mass outages are currently unlikely, companies face extended production times, rising costs, and declining equipment performance, says Richard Thurston, president of Great Lakes Semiconductor.
Coatings containing yttrium are also used in the energy sector, including for gas-fired power plants, where they protect turbine blades from extremely high temperatures. Reuters says that despite there being no current disruption to supply, industry players are closely monitoring the market situation.
