The price of yttrium, a rare earth element used in semiconductors and military applications, has seen a significant surge. China’s export controls on rare earth elements, implemented nearly a year ago, have had a particularly severe impact on yttrium, causing its price to soar approximately 140 times within a year. Entering 2026, China’s export controls on Japan have further exacerbated supply concerns, and the price increase is intensifying.
Data from the British research firm Argus Media shows that, based on European prices (an indicator outside of China), yttrium reached $850 per kilogram on February 26th. This is the highest level since comparable data became available in 2012. A year ago, the price was only around $6, but it is now rising rapidly.
Among the many rare earth elements, yttrium is characterized by its wide range of applications. For example, it can be used in light-emitting diodes (LEDs) and medical laser equipment. It is also used as a coating material for semiconductor manufacturing equipment components. In military applications, yttrium is also used to improve the heat resistance of aircraft engines.
The surge in prices began a year ago with China’s export controls. In April 2025, the Chinese government announced export controls on seven rare earth elements, including dysprosium, used in magnets for electric vehicle (EV) motors. Yttrium, classified as a scarce heavy rare earth and produced primarily by China, was also included.
Among the rare earth elements subject to export controls, yttrium faces a particularly severe supply problem due to its enormous consumption.
Data from Argus Media shows that global demand for yttrium in 2025 is approximately 13,800 tons, more than dysprosium (3,200 tons) and terbium (530 tons), which are also subject to export controls. While the price of dysprosium in Europe has more than quadrupled in a year, the increase is still far less than that of yttrium.
The upward trend in yttrium prices intensified further after 2026, triggered by China’s tightening of export controls on Japan in January.
In January, the Chinese government announced stricter export controls on dual-use items to Japan. Concerns about the supply of yttrium for military applications have intensified.
An Argus Media representative commented on the current situation, stating, “Following the export controls imposed on Japan in January, Japanese companies seeking yttrium are sourcing raw materials from the European and American markets.” In late February, China’s Ministry of Commerce explicitly named 20 Japanese companies and entities, including Mitsubishi Shipbuilding, adding them to the export control list for dual-use items.
The impact of the export controls is already reflected in China’s export volume. Chinese customs data shows that yttrium oxide exports to the world are projected to decline by 30% year-on-year by 2025.
Rising yttrium prices may burden companies seeking yttrium. Japanese companies involved in yttrium products stated, “It’s difficult to substitute with other materials, and there hasn’t been a significant reduction in procurement at present.”
The Semiconductor Equipment Association of Japan (SEAJ) noted, “At this stage, we haven’t heard of a direct impact on the production of semiconductor manufacturing equipment, but the soaring price of yttrium and the supply shortage are among the factors of concern.”
Recently, Japan has made progress in its efforts to mine rare-earth-containing marine mud in the waters off Minami-Torishima Island in the Ogasawara Islands. Yttrium is also an element found in marine mud, but commercialization will take time. As a barometer of supply concerns, monitoring price movements is becoming increasingly important.