China’s Rare Earth Dominance Threatens U.S. Tech and Defense Sectors
Scandium and yttrium, two niche rare earth elements, are becoming increasingly difficult to source as China tightens its grip on global supply chains. With Beijing controlling nearly all production, U.S. industries—particularly aerospace, defense, and semiconductors—face mounting vulnerabilities. Export restrictions imposed in April have left shipments to the U.S. stagnant, despite a temporary easing in October.
Yttrium, critical for heat-resistant coatings in jet engines, has seen prices soar 60% since November, now trading 69 times higher than a year ago. Manufacturers are rationing supplies, exacerbating shortages ahead of a pivotal March summit between Presidents TRUMP and Xi. The standoff underscores China's strategic leverage in the tech cold war.
