Aerospace suppliers test rare-earth alternatives to ease reliance on China

• Canada's National Research Council and industry partners are evaluating zirconium dioxide and non-rare-earth ceramic oxides as alternatives to modern rare-earth-based thermal barrier coatings
• European supplier Oerlikon Metco is already selling some rare-earth-free products and developing zirconia-based coatings using magnesium and calcium oxides
• A former White House National Security Council official states that even under optimistic scenarios, breaking dependency on China for rare earths will take years, not months, giving China continued leverage in trade negotiations

Summary: Aerospace Suppliers Test Rare-Earth Alternatives Amid China Dependence

Key Developments:

Aerospace suppliers are reviving decades-old turbine coating formulas from the 1970s-1980s due to rare earth shortages caused by US-China tensions. China maintains a near-monopoly on rare earths and critical materials including indium phosphide and tungsten, essential for jet engine coatings, turbine components, and semiconductor chips.

Industry Response:

The National Research Council of Canada (NRC) and industry partners are evaluating alternatives using zirconium dioxide and non-rare-earth ceramic oxides to replace modern rare-earth-based thermal barrier coatings. European producer Oerlikon Metco already sells some rare-earth-free products and is developing zirconia-based coatings using magnesium and calcium oxides. Some US thermal-coating suppliers are exploring alternatives for less critical components, while recycling surplus materials is being considered to ease supply constraints.

Market Implications:

Despite these efforts, experts warn that aerospace remains years away from adequately replacing rare-earth materials or securing domestic US supply. Geoffrey Gertz, former White House National Security Council official, states that "even under optimistic scenarios, we are years, not months, away from breaking our dependency on China for rare earths."

The supply disruptions and high prices threaten jet-engine supply chain stability. China's continued dominance provides significant leverage in US-China trade negotiations, with potential rare earth discussions expected at upcoming Trump-Xi summits.

Bottom Line:

While innovation in alternative materials shows promise, China's stranglehold on rare earths will persist in the near-term, maintaining geopolitical pressure on aerospace and defense sectors.