African Continent's Key Minerals: China-dominated Rare Earth Element Yttrium: South Africa Plans Production, Price Surges 3,500%

¬ After China restricted exports, the price of yttrium oxide soared from $6 per kilogram to $220-320 per kilogram

¬ South Africa is preparing to enter the intermediate stage of yttrium production through companies Rainbow Rare Earths and Steenkampskraal

¬ Currently, China and Myanmar supply almost all of the global yttrium production, and China has implemented a strict export license system for yttrium and several other rare earth elements since April 2025

Yttrium is one of the 17 rare earth metals. As the world's largest supplier, China has restricted exports since April, causing supply shortages and a surge in prices.

According to Argus, the price of yttrium oxide has surged from $6 per kilogram at the beginning of the year to $220 to $320 per kilogram now. Mining company Rainbow Rare Earths disclosed earlier this week that the price has risen by at least 3,500%, and South Africa is striving to become the future leader in yttrium production in Africa.

Unique Properties

Yttrium stands out among rare earth elements due to its highly specific industrial applications. According to the USGS, the main demand for yttrium comes from ceramic and phosphor fields. In the ceramic field, yttrium compounds can enhance the heat resistance and wear resistance of abrasives, continuous casting refractories, and jet engine coatings. These compounds also help in the manufacture of automotive oxygen sensors and durable cutting tools.

Yttrium also plays a core role in the electronics and laser fields. Manufacturers use yttrium to produce magnetic materials for radar systems used to control high-frequency signals. The USGS states that few materials can replace yttrium without reducing performance. There are no direct substitutes for yttrium in the fields of electronics, lasers, and phosphors. Even in the ceramic field, alternative elements such as calcium or magnesium will reduce material strength.

China-dominated Market

The price surge stems from a tightening supply throughout the year. The USGS estimates that the production of yttrium in global rare earth concentrates is between 10,000 to 15,000 tons, almost entirely produced by China and Myanmar, which control the global market. To address trade tensions with the United States, China imposed export restrictions on yttrium and several other rare earth elements in April 2025.

Permits issued by Beijing cover only small-scale exports, and delivery times have been extended, making it harder for the aerospace, energy, and electronics industries to obtain this metal. Argus said that since January, the price of yttrium oxide in Europe has surged 4,400% to $270 per kilogram, while domestic prices in China, although lower, have also increased.

African countries are trying to position themselves as alternative suppliers of rare earths. However, South Africa remains the only country with proven medium-term yttrium reserves and the conditions for development. Rainbow Rare Earths stated that they have included yttrium in the mine planning of their Phalaborwa project, expecting to produce about 213 tons of yttrium oxide annually, which will be integrated into their heavy rare earth mix products.

In the Western Cape, the Steenkampskraal project is also progressing. This project has a large monazite deposit containing approximately 87,000 tons of rare earth oxides. The project plans to produce 5,400 tons of concentrate annually starting from the second half of 2025. A planned separation plant set to start operations in 2027 will produce 2,700 tons of oxides annually, including yttrium oxide.

These projects will not immediately change the global supply landscape. However, they make South Africa one of the few countries capable of providing a reliable medium-term supply alternative to replace Chinese supplies.

Sources: ecofinagency

Original: www.toutiao.com/article/1850116143013900/

Statement: This article represents the views of the author.