U.S. Pressures China Over Severe Yttrium Export Shortage
The United States is demanding China resume yttrium exports as supply shortages drive European prices 125 times higher than Chinese rates.
A severe shortage of yttrium has created a 125-fold price gap between China and Europe, driven by export licensing rules the Government of China imposed in April 2025. While China recently extended a pause on broader rare earth export controls until January 10, the specific restrictions on yttrium remain active. This supply crunch has crippled shipments to Japan, where yttrium oxide imports dropped from 51,000 kg to 4,000 kg in September year-over-year, prompting Tokyo to seek assistance from Washington.
Jamieson Greer, the U.S. Trade Representative, has called for "concrete actions" from Chinese Vice Premier He Lifeng to resolve the crisis. The shortage threatens critical industries, including chipmaking, jet engine production, and gas-fired power plants. Washington contends that China has overpromised and underdelivered on the flow of these essential materials.
The issue is expected to be a primary focus during the APEC summit in Shenzhen on November 18-19, where Donald Trump and Xi Jinping are scheduled to meet. Alternative supply chains remain insufficient; Lynas Rare Earths is not expected to begin yttrium output at its Malaysian plant until 2028, and USA Rare Earth production remains limited.
