[Japanese Media: Chinese Export Controls Trigger 9-Fold Surge in Yttrium Prices Within One Year]
According to a report by Nikkei Asia on November 12, 2026, prices for the heavy rare earth metal yttrium have surged dramatically over the past year as China tightened export controls, prompting concerns among Japanese firms about inventory depletion and future supply stability.
Yttrium is used in defense applications, coating materials for semiconductor manufacturing equipment components, light-emitting diodes, and other high-tech sectors.
As of September, the European benchmark price for yttrium (excluding China) reached $1,087 per kilogram, according to Argus Media data—nine times higher than the same period a year earlier and 174 times the level recorded at the end of 2024. In China, the domestic price of the metal remains below 1% of that figure.
Government trade data indicate that Japan’s import price for yttrium oxide per kilogram rose by 64 times compared to the same period a year earlier, with imports totaling approximately 294 metric tons from January to September—up nearly 70% year-on-year.
The primary driver behind this trend has been China’s export control measures. In April, Beijing announced restrictions on seven rare earth elements, including praseodymium, which is used in electric vehicle motor magnets. Further constraints on exports to Japan were implemented in January through dual-use items regulations.
There are no visible signs that China intends to ease its export policies toward Japan. Hu Xijin, former chief editor of Global Times, stated that the rare earth controls serve as a warning: should Japan voluntarily designate China as an adversary, more severe consequences could follow.
The Japanese government is advancing efforts to secure stable supplies through international cooperation.
Since around 2023, when China began gradually restricting exports of critical minerals to Japan, Japan’s Ministry of Economy, Trade and Industry has repeatedly warned U.S. officials that disruptions to Japanese supply chains would inevitably affect American industrial networks. Recent procurement volumes have increased significantly.
Both governments are coordinating on issues related to yttrium and other critical minerals, expressing shared concern over the global economic impact of targeted export controls.
Japan is leveraging frameworks such as the “Critical Minerals Production Alliance” established under the G7 to share market trends and supply-demand information, aiming to promote diversification of sources.
These initiatives have broadened Japan’s sourcing network for yttrium. The country is increasing purchases from existing suppliers like South Korea and expanding into new sources in Germany, Turkey, and Estonia.
Meanwhile, corporate attitudes toward yttrium procurement vary.
“The amount of yttrium used in capacitor production is particularly large,” said a representative of a Japanese company specializing in the metal. “Capacitor manufacturers are actively seeking alternative sources outside China.”
Shin-Etsu Chemical, one of Japan’s few companies capable of refining rare earths, is investing at least 35 billion yen (approximately $219 million) to construct a new refining facility capable of processing 16 elements, including yttrium.
Mitsui Kinzoku, which procures yttrium and processes it for use in semiconductor manufacturing equipment, continues to face shortages in raw material supply from China.
Companies currently using yttrium products appear not to be experiencing significant disruption.
Yttrium is used in coatings for turbine blades in jet engines. IHI Corporation, a manufacturer of jet engine components, reported that engine production remains unaffected.
Firms involved in semiconductor manufacturing—including Kioxia, a flash memory producer—also confirmed no current operational impacts.
An analysis by Yoshiyuki Shimamine, senior researcher at the Daiichi Life Research Institute, shows no significant changes in exports of Chinese electric vehicle motors and magnets. He argues that China is maintaining shipments of such finished goods to sustain dependency on its supply chain.
If enterprises increasingly rely on Chinese finished products rather than raw materials alone, Chinese suppliers may assume a central role in global supply networks, potentially displacing Japanese firms.
“Smaller domestic companies may be phased out,” Shimamine said. “This poses substantial risks to the industry.”
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Original article: toutiao.com/article/1881612385020928/
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