China’s rare earth export restrictions are tightening global supplies of critical minerals used in defense, aerospace, semiconductors, and electric vehicle manufacturing. Prices outside China have surged, with yttrium costing 125 times more in Europe than in China, dysprosium 20 times more, and terbium eight times more, Bloomberg reports. The shortages highlight Beijing’s dominance over the global mining and processing supply chain.
The United States is pressing China to honor commitments made under an October 2025 trade truce to maintain critical mineral shipments. U.S. officials say deliveries have fallen short of expectations, with yttrium oxide shipments to Japan nearly disappearing and exports to the U.S. down about 70% from pre-2025 levels. The issue is expected to be a key topic during an upcoming meeting between President Trump and President Xi.
Meanwhile, the U.S. and its allies are working to develop alternative suppliers, including projects in Australia and domestic mining operations. However, expanding production and processing capacity will take years, with Australia’s Lynas not expected to begin production at its expanding Malaysian facility until 2028. In the meantime, manufacturers face continued price pressures and uncertainty over securing reliable supplies.
