Japan is months away from running out of yttrium, a critical metal used in vehicles, jet engines, and semiconductors, due to Chinese export restrictions. Tokyo has urgently appealed to Washington to pressure Beijing into easing controls, warning of systemic risks to global supply chains. The shortage threatens US defence supply chains reliant on Japanese-made components.
Yttrium oxide prices outside China have surged to $1,150 per kilogram, a 179-fold increase from two years ago, while Chinese domestic prices remain at $9 per kg. US and Japanese officials held emergency talks in Washington, forming a critical minerals rapid response group. The crisis stems from China’s leverage over rare earth processing, intensified by trade tensions and diplomatic friction over Taiwan.
Despite prior agreements, China has only allowed Japan minimal access to yttrium, fulfilling two-thirds of its commitments to the US. The US has also withheld jet engine exports to China’s Comac C919 project due to yttrium shortages. Boeing deals remain stalled over critical minerals disputes.
Source: Financial Times Companies · Summarized by HeadlinesBriefing