Indo-Pacific — 2026-04-10

China's Yttrium Export Controls Spark 140x Price Surge, Threaten Chip Supply Chain

Yttrium prices have surged approximately 140 times since China imposed export controls in April 2025, with US imports collapsing from 333 tons in the eight months before the controls to just 17 tons afterward. China controls over 90% of global yttrium production. The shortage threatens aeroengine thermal barrier coatings, superalloys, laser systems, and next-generation semiconductor manufacturing. Alternative sources in Australia, the US, and South Africa are not expected to materially impact supply until the late 2020s.

Analysis
The 140x price surge in a single year demonstrates the fragility of a supply chain where one country controls 90%+ of production. The defense implications are direct: yttrium is critical for jet engine thermal barrier coatings and military laser systems. Dmitriev's offer of Russian rare earth access to the US (reported in the same cycle) gains urgency in this context.

2 sources

China's export controls spark 140x yttrium price surge, fueling chip equipment fears - DigiTimes
Yttrium: The Quiet Rare Earth Powering Modern Technology and Why It's in Short Supply - Rare Earth Exchanges