Aerospace Firms Tested Alternatives to Chinese Yttrium
Manufacturers sought to reduce supply chain dependency after China imposed export controls on rare earth materials.
Updated on Sept. 27, 2026 in Manufacturing
Live Poll
Is it a risk for the U.S. to rely on foreign suppliers for critical industrial materials?
Following restrictive export controls imposed by China, aerospace manufacturers began testing alternative materials to replace yttrium in critical coatings. The industry shift responded to a reliance on Beijing, which supplied 70% of U.S. yttrium imports between 2021 and 2024.
Why it matters
The transition aims to mitigate the risk of supply chain disruptions for a material that is essential for high-performance aerospace components. As the U.S. remains 100% net-import reliant for yttrium, manufacturers are prioritizing alternatives to ensure production stability.
Honeywell utilizes 6% to 8% yttria-stabilized zirconia in its aerospace coatings. To bolster domestic supply, federal funding provided a $150 million loan for a rare-earth separation facility in California.
The players
Honeywell
Honeywell is a multinational conglomerate that produces aerospace systems, including specialized coatings for engine components.
U.S. Geological Survey
The U.S. Geological Survey is a federal scientific agency that monitors natural resources and mineral commodity supplies.
The details
Suppliers are currently evaluating zirconium-dioxide coatings stabilized with magnesium or calcium to replace traditional yttrium-based formulas. Additionally, companies have initiated recycling programs to recover yttrium from industrial processes, reducing their dependency on foreign imports.
Timeline
Between 2021 and 2024, China provided 70% of U.S. yttrium imports.
The United States remained 100% net-import reliant for yttrium in 2025.
China began issuing general export licenses to selected exporters by the end of 2025.
Reuters reported on the impact of Chinese export controls and rising costs in February 2026.
Market Landscape
The push to replace yttrium reflects a broader trend of industrial reshoring as manufacturers respond to global supply volatility. This move marks a strategic departure from long-standing reliance on concentrated overseas processing markets.
The shift toward alternative materials is designed to prevent production delays for essential aviation hardware. These engineering changes may eventually influence the cost and maintenance cycles of components reliant on advanced thermal coatings.
The takeaway
The move to diversify supply chains highlights the increasing importance of material science in maintaining industrial independence. Companies that successfully implement recycling and alternative stabilizers may gain a competitive advantage in a restricted global market.
Further reading
Learn more about industrial resilience in the Manufacturing sector.
Live Poll
Is it a risk for the U.S. to rely on foreign suppliers for critical industrial materials?
