Japan seeks US help as yttrium shortages threaten global industries

Japan faces a potential shortage of yttrium, a critical rare earth metal used in semiconductor production, jet engines, and automotive components, within the next few months. Japanese officials and industry executives have warned that stockpiles are decreasing and that the shortage could become acute before the end of the year if China does not ease its export restrictions.

Tokyo is seeking assistance from the United States government and major American corporations to address the crisis. The situation carries significant implications for global defense and technology sectors, as U.S. defense manufacturers rely on Japanese components containing yttrium.

There is a massive price disparity for the material; while yttrium oxide costs approximately $9 per kilogram inside China, the price outside China has reached $1,150 per kilogram, representing a nearly 180-fold increase over two years. Analysts suggest that China’s dominance in the mining and processing of rare earth elements serves as a significant lever in ongoing trade tensions.