US aerospace, chips face worsening rare earth shortages, sources tell

Did you know about what makes your phone's chip work or keeps planes flying smoothly? Tiny minerals called rare earths are key, and right now, the US is running low on them. Even with a recent trade truce between Washington and Beijing, shortages are getting worse, hitting aerospace and semiconductor companies hard, according to industry folks.

These shortages focus on stuff which part of a group of 17 rare elements mostly dug up in China. Some mineral helps with tough coatings on jet parts to handle extreme heat, while some boosts high-tech chips for 5G networks. But Chinese export limits, kicked in late last year, have suppliers in a bind. Two big ones are now saying no to some clients, leaving US firms scrambling for alternatives.

It's not just a minor hiccup, this could delay new aircraft builds or slow down electric vehicle tech.The problem persists despite the truce hashed out in December 2025, which eased some tariffs but didn't fix everything. Insiders from Montreal's aerospace hubs to Washington's policy circles say the crunch started worsening around January 2026. Myanmar offers a bit of supply, but it's a small, unstable source, so no quick fix there.

With President Donald Trump heading to Beijing soon for talks with Xi Jinping, probably in mid-March, there's hope for relief.

Credits: Reuters and others

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