Assistance for gas-turbine manufacturer GE Vernova as China tightens export controls on the rare-earth element.
The U.S. government is supporting domestic gas-turbine producer GE Vernova in securing its raw-material supply, according to a Reuters report published Tuesday. The company is specifically affected by shortages of the rare-earth element yttrium, which is used in protective coatings that shield gas-turbine components from extreme operating temperatures. GE Vernova is also investing in potential substitutes for the material, despite possible cost and performance drawbacks, CEO Scott Strazik told the news agency.
Yttrium is among the rare-earth elements subject to strict export controls imposed by China in April, widely viewed as a response to U.S. tariffs. Although the White House announced after bilateral talks in late October that Beijing would ease these restrictions, no official confirmation from China has followed. According to Reuters, consumers of yttrium in sectors such as aerospace and semiconductors continue to face supply constraints. With inventories declining and prices surging, several media outlets have described the situation as an emerging rare-earth crisis.
Amid rising geopolitical tensions, the United States has recently increased its national strategic stockpile. Under certain conditions, including supply disruptions, materials from this reserve may be allocated to companies to meet both military and industrial demand for critical inputs.
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