US faces China-led rare earth shortages

Suppliers to U.S. aerospace and semiconductor firms are facing worsening shortages of rare earth elements, specifically Yttrium and Scandium, which are almost entirely produced in China. These elements are crucial for defense technology, aerospace, and semiconductors, including 5G chips. China's export restrictions, imposed in April, have severely limited shipments to the United States, despite an earlier easing of trade tensions. The price of Yttrium has surged by 60% and is now 69 times higher than a year ago, leading some North American coating manufacturers to temporarily pause production and ration materials. U.S. semiconductor makers are also experiencing delays in obtaining Scandium export licenses, putting 5G chip production at risk. The U.S. has no domestic production of Scandium and limited alternative sources. U.S. President Donald Trump is expected to discuss these critical mineral export restrictions with Chinese President Xi Jinping in Beijing in March, as the Trump administration seeks to ensure access to these vital resources and develop alternative supply chains.