The Rare Earth Metal Driving Tensions Between the US and China
The alarm did not still reached the general public, but tension begins to build in the corridors of the aviation industry, in microchip laboratories, and in government offices. For months, an element almost invisible to the world – yttrium – has become the silent center of a new global dispute. Stocks are getting thinner, prices are rising, deliveries are at a standstill. And while China and the United States have promised a truce over rare earth mineralsThe wheels of advanced technology start to slow.
Although a late October meeting in South Korea between Chinese President Xi Jinping and his US counterpart Donald Trump raised hopes for a détente, the Chinese export restrictions introduced last April remain substantially in place. Beijing granted a one-year extension to the mandatory government licensing system for shipments of rare earths and products containing related materials (including those made abroad with at least 0.1 percent Chinese resources), in exchange for a similar suspension of the White House's latest restrictions on technology supply chains.
A crucial element in a market under pressure
But other measures introduced before the latest escalation remain in place. The result is a tightening of the international supply chain that threatens to slow down advanced technology production, raise costs and challenge entire industrial sectors. Yttrium plays a crucial role in the functioning of today's technologies. Without yttrium, the production of aircraft engines, high efficiency turbines, advanced power systems and semiconductors would immediately slow down.
The value of Yttrium lies in its ability to provide thermal and mechanical strength to materials subjected to extreme temperatures. Jet engine blades, for example, must withstand prolonged overheating and intense vibration; yttrium is what they can maintain structural integrity and efficiency. The same applies to industrial chip production, where yttrium-based coating protects machines against chemical wear and ensures precision in plasma etching. Its indispensable nature has made it an important element of modern technology and the military.
The role of China
The problem is that, as with several other sources, China controls almost the entire global yttrium supply chain. Not only does it produce most of it, but it also has the know-how and infrastructure to refine and separate it from other rare earth minerals, a complex and technologically advanced process. According to data from the United States, the United States imports 100 percent of its yttrium needs, of which 93 percent comes directly from China. Such stark dependence creates enormous geopolitical vulnerability.
When Beijing decided to introduce export restrictions in response to US tariffs, the entire international supply structure began to falter. Companies reported delays, difficulties in obtaining licenses and uncertainty about delivery times. In the rare earths trade, lack of predictability is often more damaging than reduced volumes: an industry accustomed to just-in-time deliveries can be thrown into crisis by even a few weeks' delay.
The effects were immediate. In Europe, the prices of yttrium oxide have risen, reaching an increase of 4,400 percent since the beginning of the year. Aerospace companies, which rely heavily on this material, have expressed their alarm and demanded urgent measures from the US government to expand domestic production. The semiconductor industry is no less worried: Some companies have called the situation a “serious” threat, predicting effects on costs, efficiency, and production timelines. Gas plants, which use yttrium in the protective coatings of turbines, are also following Chinese developments with increasing attention, although they maintain that they have not yet experienced any disruptions.
