GE Vernova and Washington Move to Secure Yttrium Supply

GE Vernova said it is working with the U.S. government to increase domestic stockpiles of yttrium, a rare earth used in gas turbine engines and high-temperature protective coatings. The company’s CEO, Scott Strazik, said GE Vernova has enough inventory to last through the rest of 2025 and into 2026, but did not specify how far into 2026.

The urgency follows as China’s export controls, first imposed in April 2025, which now require licenses to ship yttrium out of the country. Industry participants say approvals have been slow and volumes limited, constraining global supply.

According to Reuters, the impact on pricing has been severe. European prices for yttrium oxide, a key input for heat-shield coatings, have surged by roughly 4,400% since January, reaching about $270 per kilogram.

Yttrium plays a critical role in both advanced manufacturing and chipmaking. In semiconductor fabrication, yttrium-based materials serve as protective coatings and electrical insulators in several key processes.

As export controls tighten, the fallout extends well beyond semiconductors spanning energy, aerospace, and advanced manufacturing increasingly feeling the pressure as constrained yttrium supply ripples through high-performance applications.

Rising risk for Limited Alternatives

Speaking during an investor-day Q&A, Strazik said GE Vernova is monitoring the situation “every day” and plans to be opportunistic in adding inventory when material becomes available.

He added that the company is investing in alternative materials to reduce dependence on certain rare earths, while acknowledging that substitutions can involve cost, performance, or reliability trade-offs.

The challenge is compounded by limited alternative sourcing. The U.S. Geological Survey says the United States imports all of its yttrium, with about 93% sourced directly from China, and the remainder derived from material that is initially processed there. Estimates for yttrium stocks outside China vary ranging from one to twelve months of consumption with reports of trader inventories rapidly shrinking from large stockpiles to critically low levels.

Related IBS Reading

• China’s Expanding Export Controls for Rare Earth Materials
• CSIS Report Warns of Critical Mineral Supply Chain Risks Impacting Semiconductor Production
• Navigating Export Controls with IBS Electronics: Strategic Sourcing Lessons from BIS Temporary Ban
• IBS Inventory Planning and Buffering