Ytterbium
Rare Earths: Critical Minerals for The Energy Transition
Navigating the Ytterbium Market
Ytterbium is a rare earth element employed in specialised applications due to its unique optical and electronic properties. As a dopant added in trace amounts, ytterbium enables lasers to operate at near-infrared wavelengths ideal for fibre optic communications, optical data storage, remote sensing, and energy harvesting. It also helps phosphors in light-emitting diodes (LEDs), producing brightness across the visible spectrum. Ytterbium is predominantly sourced as a byproduct of bastnäsite and monazite mining, with deposits concentrated in China, Australia, and Southeast Asia. Rising adoption of ytterbium-doped technologies is straining availability. Given its specialised yet increasingly indispensable roles, the long-term ytterbium supply merits scrutiny. Exploration and future mining projects in Australia and the USA aim to diversify international supply. This analysis provides insights into strategic dynamics influencing this critical material, enabling high-impact technologies. SFA (Oxford) provides insights into dynamics and disruption factors shaping the current and future ytterbium market environment.
An introduction to Ytterbium
Ytterbium demand and end-uses
The global demand for ytterbium is being driven by rapid advancements in electronics, telecommunications, medical applications, and industrial sectors. The element’s unique optical, electronic, and catalytic properties make it essential for a wide range of high-tech applications.
One of the most significant drivers is the expansion of electronics and telecommunications, where ytterbium plays a critical role in high-performance semiconductors and ytterbium-doped fibre amplifiers (YDFAs). With increasing demand for miniaturised, high-speed electronic devices and the expansion of global telecommunications infrastructure, the market for ytterbium is expected to see continuous growth. The rise in fibre-optic networks and 5G technology has further bolstered the need for ytterbium-based amplifiers, ensuring efficient high-speed data transmission.
The medical sector is another major contributor to ytterbium demand. The increasing adoption of ytterbium isotopes in medical imaging, radiotherapy, and surgical lasers is driving market expansion. With the growing need for advanced medical diagnostics and precision radiation therapies, ytterbium’s role in healthcare is set to increase.
Additionally, continuous technological innovation is expanding ytterbium’s market potential, particularly in emerging fields such as quantum computing and ultra-high precision atomic clocks.
Medical imaging and radiotherapy
Ytterbium has several critical applications in medical imaging and cancer treatment due to its radioactive isotopes:
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Ytterbium-176 (Yb-176) is widely used in positron emission tomography (PET) and single-photon emission computed tomography (SPECT) for high-resolution medical imaging.
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Ytterbium-176 also serves as a generator isotope for lutetium-177 (Lu-177), a key radionuclide used in targeted alpha therapy (TAT) for cancer treatment.
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Ytterbium-169 (Yb-169) functions as a radiation source in portable X-ray machines, enabling medical imaging in locations without electricity.
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Gamma-ray cameras use Yb-169 to detect radioactive sources in sealed metal containers, supporting security and nuclear safety applications.
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Brachytherapy seed implants for prostate cancer treatment increasingly utilise Yb-169 as an alternative to radioactive iodine.
Medical Lasers and Devices
Ytterbium-doped laser systems have become essential in precision medical procedures, including:
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Eye surgery and microsurgery, where ytterbium lasers provide superior accuracy and control.
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Production of medical micro-implants, benefiting from ytterbium’s precise material processing capabilities.
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Surgical and therapeutic laser applications, where ytterbium-based lasers offer higher efficiency and reduced collateral tissue damage compared to traditional systems.
Industrial applications
Ytterbium is utilised in industrial settings to enhance material properties and improve manufacturing processes:
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Ytterbium is alloyed with stainless steel to improve mechanical strength, corrosion resistance, and durability.
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Stress gauges containing ytterbium help monitor ground deformations from earthquakes and nuclear explosions, as its electrical resistance increases under high stress.
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Ytterbium oxide is used in thermal barrier coatings for nickel, iron, and other transitional metal alloys, protecting them from high-temperature damage.
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Advanced ceramics infused with ytterbium oxide exhibit superior thermal and mechanical properties, making them valuable for aerospace and high-tech industrial applications.
Energy, oil and gas
Ytterbium has emerging applications in the renewable energy and oil industries:
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Solar cells benefit from ytterbium compounds, which improve solar power absorption and energy conversion efficiency.
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In the oil and gas industry, ytterbium oxide serves as a catalyst, coating material, and radiation shield in refining and processing.
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Ytterbium-based catalysts are used in alkylation and cracking reactions, optimising petroleum refining efficiency.
Protective ytterbium oxide coatings are applied to drilling and extraction equipment, enhancing durability in extreme conditions.
Optical and laser technologies
Ytterbium’s optical and electronic properties make it highly valuable in laser and photonics applications:
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Ytterbium-doped fibre amplifiers (YDFAs) are crucial for fibre-optic telecommunications, supporting long-distance, high-speed data transmission.
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Ytterbium-based laser systems provide high-power, ultra-short pulses of light, making them ideal for industrial material processing and precision measurements.
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Silicon photocells benefit from ytterbium’s single dominant absorption band at 985 nm in the infrared, allowing for direct radiant energy conversion into electricity.
Advanced electronics
Ytterbium’s role in modern electronics continues to expand, particularly in:
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Memory chips and batteries, where ytterbium compounds enhance performance and longevity in smartphones and consumer electronics.
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Semiconductors and optical devices, where ytterbium’s electronic properties contribute to higher efficiency and miniaturisation.
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Quantum computing, where ytterbium is used in ultra-stable atomic clocks, supporting the development of next-generation computing technologies.
Emerging applications
Ytterbium’s emerging applications in quantum computing, atomic clocks, and nuclear technologies are unlocking new opportunities in high-tech research and security. In quantum computing, ytterbium isotopes are increasingly used to develop stable qubits, advancing the field of next-generation computation. Meanwhile, ultra-high precision atomic clocks, such as those incorporating ytterbium-174, provide unprecedented accuracy crucial for navigation, defence, and scientific research. In the medical sector, ytterbium’s radioactive isotopes continue to be explored for nuclear medicine and isotope research, with potential applications in diagnostics and targeted therapies.
Beyond these scientific advancements, ytterbium plays an important role in security and specialised uses. When combined with erbium, ytterbium produces phosphorescent materials used in anti-counterfeiting security inks for banknotes and official documents. Additionally, it is employed in nuclear reactors as a control rod material, improving reactor stability and safety. Its ability to absorb gamma rays makes it an effective material for radiation shielding, ensuring protection in environments exposed to high levels of radiation. As research and technological innovation continue to expand, ytterbium’s role in cutting-edge industries is expected to grow significantly.

Strategic applications of Ytterbium
Thulium supply
Ytterbium, a heavy rare earth element (HREE), is primarily extracted from monazite, bastnäsite, and xenotime, rare earth minerals that contain ytterbium in low concentrations alongside other lanthanides. As with most HREEs, China dominates the global production of ytterbium, possessing the largest reserves and controlling the majority of the supply chain. Other countries with significant rare earth production that to ytterbium supply include Australia, the United States, Myanmar, India, Russia, Vietnam, and Canada.
Like many heavy rare earth elements, ytterbium is not mined as a primary resource but is instead recovered as a by-product of processing other rare earths, particularly yttrium, erbium, and dysprosium. Its natural abundance in the Earth's crust is estimated at 2 parts per million (ppm), making it more common than thulium but still relatively scarce. The extraction of ytterbium requires solvent extraction and ion exchange techniques, which are necessary to separate it from other lanthanides due to their similar chemical properties. These separation processes are technically complex and costly, contributing to ytterbium’s high market price and limiting large-scale production.
As with other critical rare earth elements, ytterbium’s supply chain is highly influenced by environmental regulations, trade policies, and geopolitical tensions. China’s dominance in rare earth production presents potential risks to global supply stability, particularly in light of export controls and geopolitical uncertainties. In response, countries such as Australia, the United States, and Canada are investing in rare earth mining projects to diversify supply sources and reduce dependence on China. However, given ytterbium’s limited standalone demand, production remains largely dependent on the market needs for co-occurring rare earths, making it a strategically challenging element to source in high volumes.
Rare earth oxide (REO) producers
Future rare earth oxide (REO) producers
Rare earth recyclers

The Rare Earth markets
SFA (Oxford) provides market intelligence on rare earth oxides (REOs) and their price drivers.


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Market Strategy Analyst

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