GE Vernova Chief Executive Officer Scott Strazik announced that the company is collaborating with the United States government to expand its strategic reserves of yttrium, a rare metal essential for gas turbine manufacturing. This partnership comes amid ongoing disruptions in the global rare earth market, following regulatory actions by China.
Stockpiles secured through 2026
Speaking at an investor event, Scott Strazik stated that GE Vernova currently has sufficient yttrium supplies to meet its needs through the end of this year and possibly beyond. He added that the company remains ready to further increase its inventories “opportunistically,” depending on market conditions.
Yttrium is a key component in special alloys and high-temperature coatings required for gas turbines. GE Vernova, one of the three largest global manufacturers in the sector, is also exploring substitutes for certain rare earths, though these alternatives may involve trade-offs in terms of cost or performance.
Impact of Chinese restrictions
China, the world’s leading supplier of yttrium, imposed export restrictions on seven rare earth elements, including yttrium, in April, in response to US-imposed tariffs. Despite a bilateral agreement aimed at easing trade flows, Western industrial users are reporting increasing shortages.
According to market data, yttrium prices outside China surged 4,400% between January and November. This volatility is affecting multiple sectors, including aerospace and semiconductor manufacturing, where demand for heat-resistant materials remains critical.
Redefining supply chains
In response to geopolitical tensions, the cooperation between GE Vernova and the US government aims to reduce the risks associated with reliance on single-source supplies. This effort is part of a broader national strategy to secure access to strategic metals.
The strengthening of yttrium reserves provides an immediate tool to maintain industrial production stability amid tightening regulations and intensifying competition for critical materials. GE Vernova continues to monitor the situation closely in order to adapt its procurement strategy to evolving international conditions.
