YTTRIUM oxide has climbed to record prices following a nearly 1,500% rally this year, underscoring the impact of Chinese trade restrictions on critical minerals.
The rare-earth element reached $126 per kilogram, compared with less than $8 at the conclusion of 2024, said Bloomberg News citing Asian Metal Inc. China implemented export controls on rare earths, including yttrium, in April, the newswire added.
Rare earth production, processing, trade and consumption remain central to ongoing commercial tensions between Washington and Beijing, said Bloomberg News. China currently commands the sector, though authorities recently pledged to ease sales restrictions. Negotiations over implementation details continue between the two nations.
Applications for yttrium span medical technology, aerospace components, ceramics, laser systems and superconductors, said Bloomberg News. United States Geological Survey data shows China supplied over 90% of American yttrium imports during the four years through 2023.
Pentagon-supported MP Materials Corp extracts yttrium at its Mountain Pass facility in the United States but is accumulating inventory whilst developing downstream processing capabilities.
In Australia, Lynas Rare Earths is increasing production capacity for yttrium from its Mount Weld deposit and Malaysian processing facility. The company already manufactures a range of rare earth materials.
The price surge reflects broader supply chain vulnerabilities in strategic minerals essential for advanced manufacturing and defence applications.
Western nations have intensified efforts to develop alternative sources and processing capacity outside China’s control, though building new supply chains requires substantial capital investment and several years of development, said Bloomberg News.
