Manufacturers Tested New Coatings After Yttrium Scarcity
Aerospace firms are experimenting with material alternatives as dependency on Chinese rare-earth supplies persists.
Updated on Sept. 27, 2026 in Manufacturing
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Following restrictive export controls imposed by China on rare-earth materials, U.S. aerospace manufacturers began testing magnesium and calcium-stabilized coatings to replace traditional yttrium. The initiative addresses a supply chain bottleneck that left the U.S. entirely dependent on imports for this critical mineral between 2021 and 2025.
Why it matters
The reliance on foreign processing for critical minerals forced manufacturers to innovate to maintain production volumes in the face of export uncertainty. Businesses must now manage the dual pressures of limited domestic refining infrastructure and the volatility inherent in specialized material supply chains.
China accounts for 87% of global rare-earth processing, leaving the U.S. with 100% net-import reliance for yttrium. While a $150 million loan was issued in 2025 for a California separation facility, manufacturers like Honeywell currently rely on 6% to 8% yttria-stabilized zirconia for coatings.
The players
Honeywell
A multinational conglomerate providing aerospace systems, control technologies, and advanced performance materials.
U.S. Geological Survey
A federal scientific agency that monitors and reports on mineral commodities, resource dependence, and geological risks.
The details
To mitigate supply risks, aerospace firms are testing zirconium-dioxide coatings stabilized with magnesium or calcium as replacements for yttria-stabilized zirconia. Companies are also increasing circularity by recycling coating material from industrial processes to recover yttrium. These efforts represent a shift toward material efficiency as manufacturers seek to insulate production from the 87% global processing concentration held by China.
Timeline
China supplied 70% of U.S. yttrium imports between 2021 and 2024.
The U.S. remained 100% net-import reliant for yttrium throughout 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 price increases in February 2026.
Market Landscape
This move follows the pattern set by China's rare earth export control regime, which catalyzed domestic efforts to decouple from foreign mineral dependencies. The reliance on Chinese processing for 87% of global rare earths remains a significant structural risk for the U.S. aerospace sector.
Operators should audit their reliance on imported rare-earth components and assess whether internal recycling programs can mitigate future supply volatility. Managers should also track the development of domestic separation facilities to determine if local supply options will become viable alternatives to current import dependencies.
The takeaway
The transition to alternative stabilizers like magnesium and calcium demonstrates the necessity of material agility in high-stakes aerospace manufacturing. Operators should monitor the progress of domestic separation facilities in California as a potential bellwether for future shifts in rare-earth procurement costs.
Further reading
For broader analysis on supply chain adaptation and industrial material sourcing, see Manufacturing.
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