Japan is running out of a critical rare earth as China's export restrictions threaten global supply chains: Japan could run out of yttrium within months, with shortages potentially emerging as early as the end of 2026 and disrupting production across the automotive, defence, and semiconductor industries. The metal is essential for coating jet engines and plasma-etching chambers used in chip manufacturing. This comes as Chinese exports of yttrium oxide to Japan have ground to a halt, forcing Japanese officials to urge Washington to pressure Beijing to ease restrictions. Meanwhile, Yttrium oxide prices outside China have skyrocketed to $1,150 per kilogram, up 179-fold in 2 years, compared with just $9 per kilogram inside China. Shortages could also disrupt US defence supply chains that rely on Japanese components containing yttrium. The supply crisis highlights China's leverage over global industries through its dominance of rare earth mining and processing, with export restrictions targeting the US and Japan amid ongoing geopolitical and trade disputes. Unless China restores exports or alternative supplies are secured, yttrium shortages could disrupt Japanese manufacturing and ripple through global supply chains, including US defence and aerospace industries. China's dominance in rare earth mining and processing gives Beijing powerful leverage in global trade. $REMX