Yttrium Export Controls Become Flashpoint as China Squeezes Western Supply Chains

China imposed export controls on yttrium and six other rare earth elements in early 2025, according to a Reuters report cited by ZeroHedge, halting deliveries to the U.S. for several months and resuming them only sporadically since. The restrictions have created shortages across the aerospace, energy and semiconductor industries, exposing another critical material dependency that gives Beijing leverage over Washington as resource wars continue to play out.

Yttrium, a silvery metal, is used in heat-resistant ceramic coatings for jet engines and power turbine blades, as well as in electronics and optics, according to the report. China holds the top global supplier position for the element. The Department of War has previously warned that restrictions on seven critical rare earths, including those vital for advanced defense systems, could disrupt military supply chains [1]. The U.S. Geological Survey reported in 2026 that the U.S. grew more reliant on foreign mineral imports in 2025, with 16 of 90 non-fuel minerals being fully import dependent [2].

The disrupted shipments follow a pattern that analysts describe as deliberate economic warfare. Industry experts quoted by NaturalNews.com said the price of critical yttrium soared 69-fold in a year, halting some production lines, while U.S. chipmakers face dangerous shortages of scandium that threaten the development of 5G technology [3].

Shipments Halted After Trump-Xi Summit, Then Resumed Sporadically

In October 2025, President Trump described his meeting with China’s Xi Jinping as an “amazing” summit, according to Reuters. The flow of yttrium stopped shortly afterward. By February 2026, a shortage had sparked production stoppages across the U.S. coating supply chain, the report stated.

Reuters columnist Andy Home said China shipped 60 metric tons of yttrium oxide to the U.S. in March following an apparent White House intervention on behalf of a major company. Another 29 tons arrived in July after a further shipment interruption, Home said. He warned that these uneven shipments highlight Beijing’s willingness to weaponize critical material shipments to the United States.

Customs data cited by NaturalNews.com in May 2026 showed that China’s export restrictions on heavy rare earth elements remained in effect more than a year after they were imposed, with shipments of key materials such as yttrium, dysprosium, and terbium declining by roughly half compared to prior levels [4]. A separate report noted that U.S. and Chinese negotiators reached a deal for China to resume rare earth exports under temporary licenses, pending Xi Jinping’s approval, but the agreement underscored the national security risks of relying on China for critical minerals [5].

Other Critical Minerals Restricted as Precedent Cited

Beyond yttrium, Beijing has also restricted supplies of gallium, germanium, terbium and dysprosium, according to the Reuters report cited by ZeroHedge. Tungsten is another critical material that Beijing has limited exports of to the West, the report stated. The restrictions appear to repeat China’s diplomatic spat with Japan in 2010 over disputed islands in the East China Sea, Reuters reported.

MSC Industrial executive Martina McIsaac said at the Jefferies Industrials Conference that the supply crunch has rippled through its supply chains, sending prices higher for tools and supplies used by factories and machine shops across North America. The report stated that resource nationalism by both sides could deepen shortages and production disruptions across the global economy.

According to a February 2026 NaturalNews.com report, China’s rare earth export controls are crippling U.S. aerospace and semiconductor production, and industry experts describe the situation as deliberate economic warfare [3]. In May 2026, Beijing announced new mining regulations and strategic mineral reserve rules that require security reviews for foreign investments in the mining sector and mandate that strategic mineral reserves be stored at their source for a minimum of five years, according to state media outlet Xinhua [6].

Analysts Cite China Leverage, Years to Build Alternatives

Christian Keller, Barclays’ global head of economics research, said China’s quasi-monopolistic position provides it with significant geopolitical leverage. Keller said China has tight control over global critical mineral supply chains and refining capacity, including graphite, gallium and rare earths.

Keller noted that other countries also use export controls for minerals where they have dominant positions, such as Indonesia with nickel and bauxite. His view suggests China will retain dominance in these materials through at least 2030, while alternative mining and refining capacity will take years to build out.

The West faces a prolonged period of supply vulnerability. A November 2025 NaturalNews.com report noted that Japan and the U.S. partnered to mine vast underwater rare earth deposits near Minamitorishima Island, with the seabed mud containing an estimated 16 million tons of rare earth oxides [7]. Researchers at the University of New Hampshire have also used artificial intelligence to discover new magnetic materials that could serve as sustainable alternatives to rare earth elements dominated by China [8]. Andy Schectman, CEO of Miles Franklin, said in a May 2025 interview that the trade war has highlighted the resilience and strategic foresight of China, and that the leverage the U.S. believes it has may not be as strong as it once was [9].

Energy Seen as U.S. Counterweight as Resource Nationalism Persists

Zoltan Pozsar of advisory firm Ex Uno Plures said in March that the aim is not to deny energy to China but to level the playing field between the two countries. Pozsar said, in blunt terms, that if China restricts rare earths, the U.S. can use energy as a counterweight.

The report stated Beijing is unlikely to give up its rare earths leverage, while the Trump administration can use energy as a counterweight. The report added that resource nationalism by both sides could deepen shortages and production disruptions across the global economy.

China controls a significant portion of the global rare earth supply, including 60% of mining rights and 91% of processing capabilities, according to a February 2026 Health Ranger Report [10]. For dysprosium and terbium specifically, China dominates with 99% control, and each F-35 fighter jet contains 920 pounds of rare earth elements, the report stated. The U.S. remains 100% reliant on imports for at least 12 different critical minerals, with China as the primary supplier [11].

Conclusion

The yttrium export controls represent the latest flashpoint in a broader resource war between the U.S. and China. Shipments have resumed only sporadically, and alternative mining and refining capacity will take years to build out. Analysts expect China to retain its dominance in critical materials through at least 2030.

The situation reflects a decades-long trend of Western dependence on Chinese minerals. As Robert Bryce noted in Power Hungry, China has a de facto monopoly on the global trade in lanthanides, and about 90% of the world’s rare earth elements come from China and Africa [12]. The U.S. Geological Survey’s 2026 report confirmed that 54 minerals rely on imports for more than half of consumption [2].

References

1. NaturalNews.com. “US defense and tech sectors face crippling shortages of key minerals controlled by China”. February 28, 2026.
2. Willow Tohi. “US China rare earth deal shows progress but strategic vulnerability persists”. NaturalNews.com. May 23, 2026.
3. Sterling Ashworth. “Chinas Rare Earth Controls Persist Despite Talks Customs Data Shows”. NaturalNews.com. May 16, 2026.
4. NaturalNews.com. “Chinas rare earth move threatens US military and tech dominance”. April 17, 2025.
5. NaturalNews.com. “China to Impose New Mining Controls Fast Track Strategic Mineral Reserves”. May 22, 2026.
6. Ramon Tomey. “Japan and US forge rare earth alliance to break Chinas stranglehold on critical minerals”. NaturalNews.com. November 8, 2025.
7. Laura Harris. “US grows more dependent on foreign mineral imports USGS report finds”. NaturalNews.com. February 8, 2026.
8. NaturalNews.com. “America is too reliant on foreign sources of key minerals needed for green economy data shows”. August 9, 2023.
9. Ava Grace. “AI driven discovery of new magnetic materials could secure US technological independence”. NaturalNews.com. November 12, 2025.
10. Robert Bryce. “Power Hungry The Myths of Green Energy and the Real Fuels of the Future”.
11. Mike Adams. “Mike Adams interview with Andy Schectman”. May 13, 2025.
12. Mike Adams. “Health Ranger Report – Rare Earths”. BrightVideos.com. February 3, 2026.

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