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| Aerospace rare earth |
Yttrium Shortages Disrupt Aerospace Coatings and Engine Production
US suppliers face worsening US Rare Earth Shortages, particularly yttrium, critical for aerospace engine and turbine coatings. Meanwhile, some North American manufacturers have paused production and limited smaller customers to preserve supply for larger clients. As a result, prices surged 60% since November, reaching 69 times last year’s levels. Consequently, aerospace supply chains risk delays despite ongoing trade detente with China.
Scandium Scarcity Impacts Semiconductor Manufacturing
In contrast, scandium shortages jeopardize next-generation 5G chip production. US semiconductor makers rely on Chinese exports, as domestic production remains non-existent. Meanwhile, license delays and export restrictions from China constrain material availability. Therefore, chip manufacturers face potential production slowdowns, threatening supply for smartphones, base stations, and specialty aluminum aerospace alloys.
Strategic Implications for Critical Mineral Supply Chains
US policymakers aim to secure alternative sources and negotiate with China to stabilize US Rare Earth Shortages. As a result, both aerospace and semiconductor sectors are reassessing supply chains. Meanwhile, reliance on China highlights geopolitical vulnerability. Long-term strategies may include domestic production, recycling of rare metals, and diversified sourcing to mitigate disruption risks.
ScrapInsight Commentary
US reliance on Chinese rare earths exposes aerospace and semiconductor sectors to supply risks. Prices and shortages will likely persist, incentivizing recycling and domestic production. Strategic diversification is crucial to maintain critical mineral security and support circular economy initiatives in high-tech industries.
