china’s Export Controls Spark Yttrium Shortage Fears, Raising Specter of New Rare Earths Crisis
BEIJING/NEW YORK, December 12,โ 2023 โข- Restrictions on yttrium exports from China are creating supply bottlenecks and price increases, prompting concerns of a โbroader rare earths crisis as the โฃworld increasingly relies on these critical โคmaterials for green technologies and defense applications. โขThe โคmove, part of Beijing’s โtightened control over strategic mineralโ exports, is impacting industries โคfrom electric vehicles to electronics andโ defense, mirroring anxieties seen during a previous โฃrare earths dispute with Japan inโ 2010.
Yttrium,while not โขas widelyโค knownโ as neodymium or dysprosium,isโ a crucial component in various high-tech applications,including redโข phosphors for displays,ceramics,and as a stabilizer in alloys usedโ in high-temperature โapplications. China dominates global yttrium production,accounting โฃfor over 99% of the world’s supply,making downstream industries notably vulnerable to export controls. The current restrictions, implemented alongsideโ controls on gallium and germanium earlier this โคyear, signal a willingness by China to leverage its dominance inโค the critical minerals supplyโฃ chain.
Reuters’ Chief Correspondent for China Commodities andโ Energy, lewis Jackson, reports that the yttrium shortage is โalready being felt byโข manufacturers, with prices โขrisingโค sharply in recent โweeks. “The situation is reminiscent of the 2010 โrare earths crisis,were China restricted exports of rare earth elements,leading to meaningful priceโค increasesโค and supply disruptions,” Jackson noted.
The restrictions โฃcome as global demand for rare earth elements surges, driven byโฃ the transition toโ electric vehicles, windโค turbines, and other clean energyโค technologies. According to a recent reportโ by the โขInternational Energyโ Agency, demand for rareโ earth elements couldโข increase sixfold by 2040. โ
Ernestโ Scheyder, a senior correspondent covering critical minerals โฃand the global energy transition, andโ author of “The โขwar โBelow: Lithium, Copper,โฃ and the Global Battle to power our Lives,” explains theโ broader implications.โฃ “China’s actions underscore the โurgentโค need โคfor diversification of the rare earths supplyโฃ chain,” Scheyder said. “Western nations are scrambling to โdevelop domestic sources โขandโค processing capabilities, but it will take years to reduce reliance on China.”
The Unitedโฃ States,โข Australia, and Canada are investing in rare earths mining and processing projects, but โขscaling up production to meet global demand remains a significant challenge. The current yttrium situationโข is prompting renewed calls for strategic stockpilingโข and โคinternational โขcooperation to ensure a stable and secure supply of theseโค vital materials. Analysts predict โฃfurther export controls โfrom China are possible, potentially encompassing otherโค criticalโ minerals, โintensifying the pressure on global supplyโฃ chains.
