China's yttrium exports to US climb in July, easing aerospace supply fears

Chinese customs data released on Thursday showed that exports of yttrium oxide to the United States rose to 29 metric tons in July. This marks the second-highest monthly volume since Beijing imposed export controls on rare earths in April 2025, offering a measure of relief to American aerospace firms that rely on the element for high-temperature alloys and protective coatings in engines.

Yttrium is a critical input for specialty metals used in aviation, and China is the dominant global supplier. The April restrictions had raised concerns of a renewed supply squeeze, but the latest figures suggest some flow has resumed ahead of planned trade talks between Chinese President Xi Jinping and the US administration in September.

While shipments to the US have partially recovered, exports to Japan remain severely restricted. Tokyo has received no dysprosium oxide for nine consecutive months and no terbium oxide for eight months, both essential for high-performance magnets. Yttrium, gallium, and other strategic materials have also been largely cut off since a diplomatic dispute erupted over Japanese Prime Minister Sanae Takaichi's remarks on Taiwan in November.

Beijing has justified the curbs on national security grounds, citing Japan's "re-militarization," and has placed additional restrictions on dozens of Japanese defense-linked companies, including divisions of Mitsubishi Heavy Industries.

In contrast, exports of rare earth permanent magnets to the US reached 647 tons in July, the second-largest monthly volume since the controls took effect, indicating that some downstream products continue to move despite the broader restrictions.