Severe shortage of yttrium and scandium rare earth elements, some U.S. aerospace and semiconductor suppliers are already "unable to accept orders"

According to industry insiders, suppliers to the aerospace and semiconductor companies in the United States are currently facing an increasingly severe shortage of rare earth elements. The shortage is primarily focused on the rare earth elements yttrium and scandium. One key pain point is yttrium — which is used in coatings to prevent engines and turbines from melting at high temperatures. Without regularly applying these coatings, engines cannot operate. Since last November, the price of yttrium in the international market has risen by approximately 60%, with the current price being about 69 times that of a year ago. According to some executives and traders from American companies, some coating manufacturers have now begun to implement material rationing. Executives from two North American companies that purchase yttrium to manufacture coatings stated that they had to temporarily halt production due to the yttrium shortage. Dylan Patel, founder and CEO of SemiAnalysis, stated that, in addition to yttrium, the scandium needed by U.S. semiconductor manufacturers is also on the verge of depletion. Patel pointed out that major semiconductor manufacturers in the U.S. rely on scandium to produce chip components that are “essentially used in every 5G smartphone and base station.” (Financial Alliance)