China’s restrictions have strained Western manufacturers, prompting GE Vernova and U.S. officials to bolster stockpiles and accelerate alternative sourcing.
GE Vernova is working with the U.S. government to bolster domestic stockpiles of yttrium, a critical rare earth mineral facing severe global shortages following China’s export restrictions, according to CEO Scott Strazik.
Speaking at an investor day event on Dec. 9, Strazik said the gas-turbine maker—one of only three major producers worldwide—has secured enough yttrium to last into next year, though he did not specify how far into 2026 existing inventories will stretch. The company is pursuing additional supplies and investing in alternative materials to offset reliance on Chinese rare earths.
“We are very focused on it every day,” Strazik said. “We’re in good shape for the foreseeable future based on the fact that we have everything we need for this year into next year. But we will continue to be opportunistic whenever there’s an opportunity to add to the inventory.”
Global Shortages Deepen
Yttrium is used in high-temperature coatings and specialty alloys that enable gas turbines, jet engines, and semiconductor equipment to withstand extreme heat. China supplies more than 90 percent of the world’s processed yttrium, and its April decision to restrict exports—alongside six other major rare earths—has triggered cascading shortages across aerospace, energy, and chipmaking.
Although Washington and Beijing recently agreed to a new licensing regime meant to accelerate exports, traders and manufacturers say the system has not solved the bottlenecks and that shipments remain erratic. Prices outside of China for yttrium have jumped 4,400 percent this year to roughly $270 per kilogram, or about $122.50 per pound, according to Argus data, amid what some analysts describe as a global “scramble for yttrium.”
“China’s export controls have undoubtedly prompted a scramble for yttrium that continues several months on,” Argus analyst Ellie Saklatvala said in November.
The stakes are significant. The Aerospace Industries Association has stated that yttrium is essential for the world’s most advanced jet engines, and semiconductor executives warn that shortages could soon become a major bottleneck, driving up costs and lengthening production timelines.
“Shortages will increasingly become a real chokepoint,” said Richard Thurston, CEO of Great Lakes Semiconductor.
By Tom Ozimek
