Rare earth shortages are intensifying across U.S. aerospace and semiconductor sectors, despite a trade truce ahead of a planned summit between Donald Trump and Xi Jinping.
Suppliers report worsening shortages of yttrium and scandium, critical materials almost entirely produced in China and vital to defense, aviation and chip manufacturing.
Yttrium, used in high-temperature engine coatings, has become a major bottleneck. Prices have surged 60% since November and now stand 69 times higher year-on-year.
Two North American coating manufacturers have temporarily paused production, with one prioritizing larger engine clients and rejecting smaller or offshore customers.
Another supplier recently exhausted its yttrium oxide inventory, halting sales of affected products, according to sources familiar with operations.
U.S. officials acknowledge certain manufacturers now face material shortages, though jet engine and semiconductor output remains largely unaffected for now.
China exported just 17 tons of yttrium products to the U.S. after April’s controls, compared with 333 tons in the prior eight months.
Semiconductor firms are also grappling with limited scandium supplies, threatening next-generation 5G components. Analysts warn U.S. stockpiles may last only months.
