By Solomon Cefai
SINGAPORE, Aug 20 (Reuters) – Chinese exports of rare earth yttrium to the U.S. rose in July, Chinese customs data showed on Thursday, possibly giving some reprieve to U.S. aerospace buyers who depend on the material for critical aviation applications.
China, the main source of the element used in specialty alloys found in engines as well as coatings to shield against high temperatures, restricted exports along with other rare earths in April 2025, sparking fears of a new rare earth crisis.
But the country’s exports to the U.S. of 29 metric tons of yttrium oxide last month were the second-highest since China introduced export controls on the rare earth.
The shipments come as Chinese President Xi Jinping prepares to visit the White House for trade talks later in September.
China produces the vast majority of the world’s rare earths, and has used controls on their export as a potent diplomatic tool.
By contrast, exports of the material and other strategic goods to Japan remain tightly constrained.
Japan, once among the world’s largest buyers of Chinese rare earths and strategic metals, has been all but cut off from exports of yttrium, terbium, gallium and dysprosium since Japanese Prime Minister Sanae Takaichi sparked a diplomatic spat with China with remarks over Taiwan in November.
Beijing’s commerce ministry cited national security and Japan’s “re-militarization” as justification for the curbs, then placing extra controls on dozens of Japanese defense-linked firms including the shipbuilding and aero engine divisions of Mitsubishi Heavy Industries.
July was the ninth month in which China sent it no dysprosium oxide, and the eighth for terbium oxide. Both are used in tiny quantities in high-performance magnets.
Meanwhile, China continued to export good volumes of rare earth permanent magnets. The 647 tons of these items it exported to the U.S. in July was the second-largest monthly volume since export controls came into effect.
(Reporting by Solomon Cefai’ Editing by David Holmes)
Comments