• Yttrium oxide prices jumped from $6/kg to $220–320/kg after China restricted exports.
• South Africa prepares to enter medium-term yttrium production through Rainbow Rare Earths and Steenkampskraal.
• China and Myanmar currently supply almost all global yttrium output, with China imposing strict export licences since April 2025.

Yttrium ranks among the 17 metals classified as rare earths. China, the world’s dominant supplier, has restricted exports since April, which has triggered supply shortages and a dramatic price spike.

Argus reports that yttrium oxide prices rose from $6 per kilogram at the start of the year to $220–320 per kilogram today. This surge of at least 3,500%, as disclosed earlier this week by miner Rainbow Rare Earths, comes as South Africa positions itself as a future leader in African yttrium production.

Unique characteristics

Yttrium stands out within the rare-earth group due to its highly specific industrial uses. The United States Geological Survey (USGS) says most demand comes from ceramics and phosphors. In ceramics, yttrium compounds improve heat resistance and abrasion strength in abrasives, continuous-casting refractories and jet-engine coatings. The compounds also support automotive oxygen sensors and durable cutting tools.

The metal also plays a central role in electronics and lasers. Manufacturers use yttrium to produce magnetic materials for radar systems, where they control high-frequency signals. The USGS notes that very few materials can replace yttrium without performance loss. In electronics, lasers and phosphors, no direct substitutes exist. Even in ceramics, alternatives like calcium or magnesium weaken material strength.

A market dominated by China

The price spike stems from tightening supply throughout the year. The USGS estimates global yttrium output in rare-earth concentrates at 10,000–15,000 tonnes, almost entirely produced in China and Myanmar, which hold operational control of the global market. China imposed export restrictions on yttrium and several other rare earths in April 2025 in response to trade tensions with the United States.

Licences issued by Beijing cover only small volumes, and delivery timelines have lengthened, making the metal harder to source for aerospace, energy and electronics. Argus says European yttrium oxide prices jumped 4,400% since January to $270 per kilogram, while Chinese domestic prices, though lower, also increased.

African countries seek to position themselves as alternative suppliers of rare earths. Yet South Africa remains the only nation with known medium-term yttrium reserves ready for development. Rainbow Rare Earths says it has now included yttrium in the mine plan for its Phalaborwa project, with expected annual production of about 213 tonnes of yttrium oxide integrated into its heavy rare-earth mixed product.

In the Western Cape, the Steenkampskraal project is also advancing. The site holds a large monazite deposit containing roughly 87,000 tonnes of rare-earth oxides. It plans to produce 5,400 tonnes of concentrate per year from the second half of 2025. A separation plant scheduled for 2027 will deliver 2,700 tonnes per year of oxides, including yttrium oxide.

These projects will not immediately shift the global balance. However, they position South Africa among the few jurisdictions able to offer a credible medium-term alternative to Chinese supply.

This article was initially published in French by Emiliano Tossou

Adapted in English by Ange Jason Quenum