Rare Earth Shortages Squeeze Aerospace, Semiconductor Supply Chains
WASHINGTON – Suppliers to U.S. aerospace and semiconductor manufacturers are facing tightening supplies of key rare earth materials.
The shortages center on niche elements such as yttrium and scandium — materials widely used in defense systems, jet engines and next-generation semiconductor manufacturing. Production of both materials is heavily concentrated in China, creating supply risks for manufacturers that depend on them.
Although Beijing resumed many rare earth exports after imposing restrictions, shipments of several critical materials to the United States remain sharply limited.
Chinese customs data show that only 17 tons of yttrium products were exported to the United States in the eight months following the export controls, compared with 333 tons during the previous eight-month period.
Yttrium, which is used in heat-resistant coatings that prevent engines and turbines from melting at extreme temperatures, has become a major pressure point for aerospace suppliers. Prices have increased about 60% since November and are roughly 69 times higher than a year earlier. Some manufacturers have begun rationing supplies.
Scandium supplies are also tightening. The element plays a small but critical role in aerospace alloys, fuel cells and advanced semiconductor processing, including components used in 5G smartphones and base stations.
Global scandium production totals only a few dozen tons annually. With aerospace manufacturers already struggling to keep pace with demand for aircraft and spare parts, industry leaders warn that prolonged shortages could eventually affect jet engine output and advanced semiconductor manufacturing.
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