Highlights

• South Korea imported more dysprosium oxide from China in Q1 2025 than in all of 2024.
• This increase deepens South Korea's reliance on Chinese rare earth supply chains.
• China produces 98% of the world's dysprosium, a critical element used in electric vehicle motors, wind turbines, and defense systems.
• The growing import trend raises strategic concerns for South Korea's economic decarbonization and national defense capabilities.

According to customs data compiled by Adamas Intelligence (opens in a new tab), South Korea imported more dysprosium oxide from China in the first three months of 2025 than it did during all of 2024, underscoring a deepening dependency on Chinese-controlled rare earth supply chains.

The surge in imports places South Korea ahead of even Japan—traditionally a leading consumer of high-performance rare earths—as China’s top export destination for dysprosium oxide in Q1 2025.

Dysprosium is a critical heavy rare earth element (HREE) used in the manufacture of high-temperature permanent magnets essential for electric vehicle (EV) motors, wind turbines, and advanced defense systems. China currently produces approximately 98% of the world’s dysprosium, as reported by Mining Digital, and dominates every stage of the midstream and downstream value chain.

In 2024, 47.5% of South Korea’s total rare earth imports came from China, a number now poised to grow. The data raises strategic alarms for Seoul as it seeks to decarbonize its economy and strengthen its national defense capabilities—both of which depend on secure access to rare earths like dysprosium, terbium, and neodymium.

Despite talk of regional diversification and expanded partnerships, South Korea’s continued over-reliance on Chinese supply chains highlights the urgent need for localized refining capacity and strategic reserves, as well as collaborative investments in non-Chinese sources of HREEs. Rare Earth Exchanges will continue to monitor East Asian rare earth trade trends and their implications for geopolitical risk, industrial strategy, and clean energy security.