Rare earth minerals drive tensions between the US and China

The warning did not work However, it did reach the general public, but tensions began to rise in the corridors of the aviation industry, in microchip labs, and in government offices. For months, an element almost invisible to the world – yttrium – has become the silent center of a new global conflict. Supplies are dwindling, prices are skyrocketing, deliveries are halting. While China and the United States did so He promised a truce on rare earth metalsthe wheels of advanced technology began to slow down.

Although the meeting held in late October in South Korea between Chinese President Xi Jinping and his American counterpart Donald Trump raised hopes for a breakthrough, Chinese export restrictions That was introduced last April is still largely in place. Beijing has granted a one-year reprieve to the state’s mandatory licensing regime for shipments of rare earth elements and products containing related materials (including those made abroad with at least 0.1 percent Chinese resources), in exchange for a similar suspension to the White House’s recent restrictions on technology supply chains.

A critical element in a market under pressure

But other measures taken before the latest escalation remain in place. The result is a tightening of the international supply chain, which threatens to slow high-tech production, raise costs, and challenge entire industrial sectors. Yttrium plays a crucial role in the functioning of contemporary technologies. Without yttrium, the production of aircraft engines, high-efficiency turbines, advanced power systems, and semiconductors would immediately slow.

The value of yttrium lies in its ability to impart thermal and mechanical strength to materials exposed to extreme temperatures. For example, jet engine blades must withstand prolonged high temperature and intense vibration; Yttrium is what allows them to maintain structural integrity and efficiency. The same is true for industrial chip manufacturing, where yttrium-based coatings protect machinery from chemical corrosion and ensure precision in plasma etching. Their indispensable nature made them an essential component of modern technology and the military.

China’s role

The problem is that China, as with many other resources, controls almost the entire global yttrium supply chain. Not only does it produce most of it, but it also has the knowledge and infrastructure to purify it and separate it from other rare earth minerals, a complex and technologically advanced process. According to American data, the United States imports 100% of its yttrium needs, and 93% of it comes directly from China. Such stark dependence creates enormous geopolitical vulnerabilities.

When Beijing decided to impose export restrictions in response to US tariffs, the entire international supply structure began to falter. Companies reported delays and difficulties in obtaining licenses and uncertainty about delivery dates. In the rare earth trade, a lack of predictability is often more damaging than low volumes: an industry accustomed to just-in-time deliveries can run into a crisis with even a few weeks of delay.

The effects were immediate. In Europe, yttrium oxide prices have risen, reaching an increase of 4,400 percent since the beginning of the year. Airlines, which rely heavily on this substance, expressed their concern and called on the US government to take urgent measures to expand domestic production. The semiconductor industry is no less concerned: some companies have described the situation as a “serious” threat, and have predicted impacts on costs, efficiency and production schedules. Gas-fired power plants, which use yttrium in protective coatings for turbines, are also watching Chinese developments with increasing interest, although they insist they have not seen any outages so far.