China Restricts Critical Metals Supply, US Aerospace Industry Struggles
China’s rare earth metals supply to the United States has stalled again in early 2026. Several aerospace and semiconductor industry suppliers are beginning to experience shortages of critical materials such as yttrium and scandium.
This situation has emerged despite relatively calmer trade relations between Washington and Beijing compared to last year. Nevertheless, the flow of strategic materials remains unrecovered.
According to Reuters, a number of suppliers to North American aerospace industries have already restricted sales as raw materials become increasingly difficult to obtain. Two suppliers even temporarily halted production. Several companies have chosen to prioritise large customers to keep operations running.
Dependence on China represents the primary source of the problem. Global production of yttrium and scandium is concentrated in the country. Both elements belong to the rare earth metals group used in military technology, aircraft engines, and the semiconductor industry.
China’s customs authority reported that yttrium shipments to the United States have declined sharply since export restrictions were implemented in April of last year. In the eight months following the policy, exports reached only approximately 17 tonnes. In the eight-month period before the restrictions, volumes had reached approximately 333 tonnes. This shift has tightened raw material supplies for American industry.
Yttrium is used in protective coatings for aircraft engines and turbines. This coating keeps components stable at high temperatures. Without regular maintenance using this material, engines cannot operate. According to Reuters, yttrium prices have risen approximately 60 per cent since the end of last year and are now approximately 69 times higher compared to the previous year. The price surge reflects limited material availability in the market.
Supply pressure has emerged as the aerospace industry continues to address demand. Aircraft engine manufacturers are facing high spare parts requirements from airlines. Aircraft manufacturers are also increasing production. Companies such as Boeing and Airbus are expanding commercial aircraft output, making the engine supply chain increasingly sensitive to raw material disruptions.
Shortages have also affected scandium, which is used in chip manufacturing. According to industry sources cited by Reuters, this material is used in components installed in fifth-generation network devices. Available supplies are estimated to be sufficient for only several months. The United States does not yet have domestic scandium production, so import dependence remains high.
Global scandium production volumes are extremely small, amounting to only tens of tonnes annually. The narrow market structure means supply disruptions are quickly felt. Several American chip manufacturers have reportedly experienced delays in obtaining export permits from China. These companies have subsequently requested government support to accelerate access to raw materials.
This situation has attracted the attention of the US government. American officials have stated that efforts to secure strategic mineral supplies are underway, including through negotiations with Beijing and the development of alternative sources.
The rare earth metals issue is expected to emerge during the planned meeting between Donald Trump and Xi Jinping scheduled to take place in Beijing in March. The meeting occurs as America’s technology and aerospace industries face increasingly tangible supply pressure.
The cases of yttrium and scandium demonstrate the fragility of strategic mineral supply chains. Concentrated production in a single region makes it difficult for industries to find alternatives in the short term. Until alternative sources become available, the risk of supply disruptions will continue to shadow America’s technology and aerospace sectors.