Energy heavyweight GE Vernova (NYSE: GEV) has confirmed a strategic arrangement with the United States government to secure and boost stockpiles of yttrium, a collaboration explicitly aimed at safeguarding access to this critical input for the outfit's gas turbine manufacturing operations.
CEO Scott Strazik detailed the initiative during the company’s 2025 Investor Update yesterday, explaining that the partnership addresses recent export curbs implemented by China, which remains the dominant global producer of yttrium.
Supply chain constraints
The move comes after China restricted shipments of yttrium and six other elements back in April following the imposition of U.S. tariffs, a retaliation that saw prices for these materials outside China surge by around 4,400% between January and November.
Yttrium is utilised in thermal barrier coatings that allow turbines to function at the high temperatures necessary for power generation, prompting Strazik to note the firm is "focused on it every day" regarding material availability.
While current inventories are sufficient to cover production requirements through the remainder of 2025 and into 2026, the federal cooperation is designed to extend coverage beyond this timeframe and mitigate long-term disruption risks.
Alongside the supply chain update, the group issued revised multi-year financial targets which saw GE Vernova increase its 2028 revenue forecast to US$52 billion - a rise from the previous $45 billion estimate.
“We will deliver value in the short term, but I’m most excited about our long-term potential as we focus on value-accretive capital allocation to drive growth and innovation while delivering shareholder returns,” Strazik said.
"We are executing efficiently, and there is more to come as we enter 2026 with significant momentum.”
Management also declared the quarterly dividend would double to $0.50 per share, while the board further authorised an expansion of the share repurchase programme by lifting the cap from $6 billion to $10 billion.
GE Vernova rocketed almost 15% on the news to close at US$723 per share.
