Highlights

• China produces nearly all of the world's 10,000-15,000 tonnes of annual yttrium output from heavy rare earth clay deposits, creating absolute supply chain dominance for this critical element used in defense lasers, radar systems, and jet engine coatings.
• Yttrium has few viable substitutes across its key applications, including:
  • Nd:YAG military lasers
  • YIG radar components
  • YSZ thermal barrier coatings
  • LED phosphors
• Victory Metals' North Stanmore Project in Western Australia represents one of the most advanced non-Chinese heavy rare earth developments globally, with a 300+ Mt resource, 38-80% heavy REE content, and potential to become a major Western yttrium supplier for defense and industrial markets.

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Yttrium remains one of the least understood yet most strategically critical rare earth elements. Produced almost entirely as a byproduct of heavy rare-earth mining, global yttrium output—measured as yttrium contained in rare-earth mineral concentrates—sits at roughly 10,000–15,000 tonnes per year as of 2023, according to the U.S. Geological Survey (USGS).

Nearly all of it comes from China and Myanmar, where ion-adsorption clay deposits rich in heavy rare earths (Dy, Tb, Y) dominate global supply. Outside these two countries, yttrium production is limited to small byproduct streams from rare-earth or uranium operations.

China’s Upstream Dominance: A Structural Dependency

China’s rare earth supply chain remains vertically integrated and state-directed. In 2023, Beijing issued a 240,000-ton REO mining quota, including ~19,000 tons from heavy-REE–bearing ion-adsorption clays. Yttrium volumes are not reported separately but fall entirely within this heavy-REE allocation.

China also exported a few thousand tonnes of Y₂O₃-equivalent material in 2023, primarily to Japan, Italy, the United States, and South Korea—underscoring its role as the planet’s indispensable supplier.

Upstream production is controlled by major state-owned conglomerates:

• China Minmetals
• Orient Rare Earth
• Longyi Heavy Rare-Earth
• Ganzhou Rare Earth Mineral Industry
• Guangxi Tianyuan Rare Earth Hi-Tech

In 2021, Beijing consolidated Minmetals, Chinalco’s rare earth division, and Ganzhou Rare Earth Group into the China Rare Earth Group, now controlling the majority of China’s heavy-REE production—including yttrium. Meanwhile, China Northern Rare Earth (Baotou) continues to dominate light rare earths from Bayan Obo but contributes minimal Y.

Outside China, no stand-alone yttrium mines exist. Byproduct volumes are modest and inconsistent. Some production occurs from:

• Monazite and placer operations in India and Brazil
• Heavy REE pilot output from Northern Minerals (Australia)
• Advanced but pre-production projects such as Alkane’s Dubbo (Australia) and Avalon Advanced Materials (Canada)
• Victory Metals profiled below

For now, China’s chokehold on mining, separation, and refining is absolute, driving governments and OEMs to accelerate alternative heavy-REE development.

Downstream Demand: A Quiet Linchpin in Modern Technology

Yttrium’s value comes from its unique chemistry. Whether in yttrium oxide (Y₂O₃), yttrium aluminum garnet (YAG), or yttrium iron garnet (YIG), it underpins several critical applications.

Defense and Aerospace

• Nd:YAG lasers – used in military rangefinders, target designators, and guided weapons
• YIG microwave components – found in radar tuning, EW systems, secure comms
• YSZ thermal barrier coatings – essential for jet engine turbines and military propulsion
• Specialty alloys and optics – improve high-temp strength, IR transparency, and optical durability

Commercial and Industrial

• Telecom & electronics: YIG filters, resonators, fiber-optic isolators
• Medical & industrial lasers: Nd: YAG surgical and machining lasers
• Lighting & displays: YAG: Ce phosphors for LEDs; yttrium-based scintillators in X-ray screens
• Ceramics & glass: YSZ oxygen sensors, fuel cells, high-end optics, cutting tools
• Catalysts & specialty alloys: Refining catalysts, superconductors, high-strength Mg/Al alloys

Few substitutes match yttrium’s performance. Most alternatives result in degraded thermal stability, weaker optical output, or poor high-temperature performance. This is why yttrium is increasingly viewed as a strategic material rather than a commodity.

Victory Metals (ASX: VTM): A Western Yttrium Contender

Victory Metals (opens in a new tab) is emerging as a credible future supplier of yttrium and heavy rare earths outside China. Its flagship North Stanmore Project near Cue, Western Australia, is one of the largest heavy-REE–rich clay deposits in the Western Hemisphere.

Resource Strength

• Hundreds of millions of tonnes of defined resource (over 300 Mt publicly documented; drilling covers only ~10% of the system)
• Heavy rare earth content ranging from 38% to 70–80% in enriched zones
• Yttrium is one of the most abundant heavy REEs in these clays
• Additional value from scandium and hafnium

North Stanmore is now considered Australia’s largest heavy-REE clay resource, with a projected mine life extending multiple decades.

Development Momentum

Victory has:

• Completed a scoping study with US$300–400M CapEx
• Begun a Pre-Feasibility Study and pilot plant design
• Raised A$11.5M to accelerate work
• Attracted a US$190M EXIM Bank Letter of Interest
• Drawn interest from Japanese groups, including Sumitomo
• Rejected early sovereign offers to 保持 offtake flexibility

Strategic Positioning

North Stanmore’s heavy-REE and yttrium output could feed:

• Defense thermal coatings and radar components
• High-temp magnet supply chains (via Dy/Tb)
• LED phosphors
• Industrial and medical lasers
• Specialty ceramics and alloys

Victory views North Stanmore as a Western-aligned alternative to Chinese heavy-REE supply, and is targeting diversified customers in Japan, Europe, and North America.

Leadership

• CEO Brendan Clark – steering corporate strategy and global partnerships
• Professor Ken Collerson – Technical Director and chief geologist, credited with identifying the deposit’s heavy-REE potential

Under this team, Victory has moved rapidly from discovery to large-scale resource definition, gaining attention from both industry and policymakers.

Outlook

If North Stanmore enters production, Victory Metals could become a major non-Chinese yttrium supplier, providing a meaningful alternative source for defense, aerospace, semiconductor, and advanced-materials markets. While success is not guaranteed—metallurgical, capital, and permitting risks remain—Victory is one of the most advanced heavy-REE clay developers in the Western world.

Its potential contribution to global yttrium supply is not merely economic—it is strategic.

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