Yttrium's 125-Fold Price Gap Looms Over Trump-Xi Talks in Shenzhen
China bought itself two more months on Monday by extending the pause on its sweeping October 2025 rare earth export controls to Jan. 10, Reuters reported, but the metal squeezing buyers hardest right now was never covered by it. That metal is yttrium, which sits under a separate set of licensing rules Beijing imposed in April 2025 on seven medium and heavy rare earths. When the pause began last…
China's rare earth export controls face a stark price gap of 125-fold over impending Trump-Xi talks in Shenzhen, according to a recent report. Yttrium, a crucial metal for turbine blades and jet engines, is currently experiencing a severe shortage due to Beijing's licensing rules. In the past year, China's yttrium oxide exports have dropped to about two-fifths of their 2023-2024 average, with European prices reaching $1.15 million per ton compared to China's $9,144 per ton, a 125-fold difference.
Japan has been hit the hardest, receiving only 4,000 kilograms of yttrium oxide in September, a sharp decline from the 51,000 kilograms in the previous year. Tokyo is reportedly on the brink of running out, prompting a plea from the Japanese industry ministry for Washington to pressure Beijing. The International Energy Agency warns that full implementation of China's expanded controls could jeopardize $6.5 trillion worth of downstream production outside China annually.
U.S. Trade Representative Jamie Zampepo Greer has called on China for concrete actions, expressing skepticism about Beijing's promises. The shortage extends beyond chipmaking, affecting various industries reliant on yttrium. While global stockpiles of critical minerals remain opaque, some sources claim to have limited supplies available at exorbitant prices, ranging from $1 million to $9,144 per ton.
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