Global exports of the rare earth yttrium have stalled, causing what a Japanese official described as a “supply-demand crunch”, with the Financial Times reporting that Tokyo was months away from running out of the critical metal.
Yttrium is essential for manufacturing consumer electronics, LEDs, aviation engines, semiconductor production equipment and a variety of industrial products.
China accounts for almost two-thirds of rare earth mining production and 92 percent of global refined output, according to the International Energy Agency.
“It is true that exports of yttrium have stalled not only to Japan but worldwide, causing a supply-demand crunch and soaring prices,” a Japanese industry ministry official told AFP on Wednesday, on condition of anonymity.
“Exports to Japan have decreased, including delays in shipments, and the global volume itself is low,” the official said.
The comments came after the Financial Times reported that Japan could exhaust its supply of the critical material in “months”.
Japanese Prime Minister Sanae Takaichi said in July that yttrium was “globally scarce” and was “an important rare earth for our country”.
According to Chinese customs data, exports of yttrium oxide to Japan amounted to 4,000 kilograms in September, compared with 51,000 kilograms in the same period the previous year.
The industry ministry official said Tokyo was working with the United States and European nations on critical mineral resources and rare earths, including yttrium.
Beijing has intensified pressure on Tokyo since Takaichi hinted last November that Japan could intervene militarily in any attack on self-ruled Taiwan.
China views Taiwan as its territory and has not ruled out taking it by force.
“China imposed export controls on Japan in accordance with laws and regulations, with the aim of curbing Japan’s attempts at remilitarisation and possessing nuclear weapons,” Chinese foreign ministry spokeswoman Mao Ning told a regular briefing on Wednesday.
Japan has asked the US government and American businesses to press China to ease rare earth export controls to avoid “severe disruption to the global automotive, defense and chip industries”, the Financial Times report said.
US defense supply chains rely on Japanese components that use yttrium, the newspaper said.
