As yttrium is chemically similar to lanthanides, it occurs in the same ores (rare-earth minerals) and is extracted by the same refinement processes. A slight distinction is recognized between the light (LREE) and the heavy rare-earth elements (HREE), but the distinction is not perfect. Yttrium is concentrated in the HREE group because of its ion size, though it has a lower atomic mass.
Rare-earth elements (REEs) come mainly from four sources:
* Carbonate and fluoride containing ores such as the LREE bastnäsite ((Ce, La, etc.)(CO)F) contain an average of 0.1% of yttrium compared to the 99.9% for the 16 other REEs. The main source for bastnäsite from the 1960s to the 1990s was the Mountain Pass rare earth mine in California, making the United States the largest producer of REEs during that period. The name "bastnäsite" is actually a group name, and the Levinson suffix is used in the correct mineral names, e.g., bästnasite-(Y) has Y as a prevailing element.
* Monazite ((Ce, La, etc.)PO), which is mostly phosphate, is a placer deposit of sand created by the transportation and gravitational separation of eroded granite. Monazite as an LREE ore contains 2% (or 3%) yttrium. The largest deposits were found in India and Brazil in the early 20th century, making those two countries the largest producers of yttrium in the first half of that century. Of the monazite group, the Ce-dominant member, monazite-(Ce), is the most common one.
* Xenotime, a REE phosphate, is the main HREE ore containing as much as 60% yttrium as yttrium phosphate (YPO). This applies to xenotime-(Y). The largest mine is the Bayan Obo deposit in China, making China the largest exporter for HREE since the closure of the Mountain Pass mine in the 1990s.
* Ion absorption clays or Lognan clays are the weathering products of granite and contain only 1% of REEs. The final ore concentrate can contain as much as 8% yttrium. Ion absorption clays are mostly in southern China. Yttrium is also found in samarskite and fergusonite (which also stand for group names).
One method for obtaining pure yttrium from the mixed oxide ores is to dissolve the oxide in sulfuric acid and fractionate it by ion exchange chromatography. With the addition of oxalic acid, the yttrium oxalate precipitates. The oxalate is converted into the oxide by heating under oxygen. By reacting the resulting yttrium oxide with hydrogen fluoride, yttrium fluoride is obtained. When quaternary ammonium salts are used as extractants, most yttrium will remain in the aqueous phase. When the counter-ion is nitrate, the light lanthanides are removed, and when the counter-ion is thiocyanate, the heavy lanthanides are removed. In this way, yttrium salts of 99.999% purity are obtained. In the usual situation, where yttrium is in a mixture that is two-thirds heavy-lanthanide, yttrium should be removed as soon as possible to facilitate the separation of the remaining elements.
Annual world production of yttrium oxide had reached  by 2001; by 2014 it had increased to . Global reserves of yttrium oxide were estimated in 2014 to be more than . The leading countries for these reserves included Australia, Brazil, China, India, and the United States. Only a few tonnes of yttrium metal are produced each year by reducing yttrium fluoride to a metal sponge with calcium magnesium alloy. The temperature of an arc furnace of greater than 1,600 °C is sufficient to melt the yttrium.