Suppliers to US aerospace and semiconductor firms are grappling with rare earth shortages, heightening supply chain concerns ahead of a Beijing summit between Donald Trump and Xi Jinping, Reuters reported Thursday.

The key shortages are focused on yttrium and scandium, which are vital for aerospace engines and chips and are almost entirely produced in China, the report said.

Yttrium, essential for jet engine coatings, has become a key bottleneck. Prices are up 60% since November and nearly 70-fold year over year, prompting two North American firms to pause production, according to the report.

A White House official said the administration is pursuing talks with China and developing alternative supply chains, the report added.

US aircraft engine makers GE Aerospace (GE), RTX (RTX) unit Pratt & Whitney, and Honeywell International (HON) didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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