'Rare earth shortages worsen in US despite trade truce', Pg16

Key Highlights:

• US aerospace and semiconductor firms are facing worsening rare earth shortages, specifically yttrium and scandium, despite a trade truce between the US and China.
• Yttrium prices have increased by 60% since November and are 69 times higher than a year ago, leading to rationing by some coating manufacturers.
• China's yttrium exports to the US dropped significantly from 333 tonnes to 17 tonnes in the eight months following the imposition of export controls in April.
• US semiconductor manufacturers are experiencing scandium shortages, potentially impacting the production of next-generation 5G chips.

Detailed Insights:

• The shortages of yttrium and scandium, primarily produced in China, affect critical components in defense technology, aerospace, and semiconductors.
• Yttrium is crucial for coatings that prevent engine and turbine melting at high temperatures, and the lack of regular application can render engines unusable.
• Some North American firms that use yttrium for coatings have temporarily paused production and are prioritizing larger clients due to the scarcity.
• The US government is aware of the shortages, and US chipmakers have sought assistance from Washington due to delays in receiving scandium export licenses from China.
• The easing of trade tensions, including China pausing its critical mineral export restrictions, is expected to be discussed during the meeting between US President Trump and Chinese President Xi Jinping in Beijing in March.

Key Concepts Involved:

• Rare Earth Elements: A set of 17 metallic elements crucial for various modern technologies.
• Semiconductors: Materials with electrical conductivity between conductors and insulators, essential for electronic devices.
• 5G Chips: Integrated circuits designed for fifth-generation wireless technology, enabling faster data transmission.