
TL;DR
A potential shortage of rare earth elements, particularly erbium and yttrium, poses risks to U.S. national security and technology sectors. These elements are crucial for applications ranging from electric vehicles to fiber-optic communications.
✦ Why It Matters
Evaluate your supply chain for rare earth elements and consider alternatives to mitigate risks.
Key Takeaways
Full Summary
Rare earth elements, especially erbium and yttrium, are crucial for various technologies, including electric vehicles and fiber-optic communication systems. Erbium amplifies optical signals in fiber-optic cables, while yttrium is essential for thermal barrier coatings in jet engines.
Currently, China dominates the global supply of these elements, controlling nearly all production and processing. Export restrictions from China, set to take effect in November 2025, could severely impact U.S. industries reliant on these materials.
Despite a $12 billion initiative called Project Vault to stockpile critical minerals, there is little progress in developing alternative sources outside China. The situation highlights the urgent need for the U.S. to address its dependency on Chinese rare earths to safeguard national security and technological advancement.
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