Highlights

• The U.S. dysprosium market is set to expand, crucial for high-performance magnets in electric vehicles, wind turbines, and defense technologies.
• Government initiatives and private sector investments aim to develop domestic rare earth supply chains and reduce reliance on Chinese imports.
• Market growth faces challenges including price volatility, processing limitations, and the ongoing search for sustainable recycling technologies.

---

The U.S. dysprosium market is projected to grow at a compound annual growth rate (CAGR) of 5.2% from 2025 to 2035, driven by surging demand for high-performance magnets in electric vehicles (EVs), wind turbines, and defense applications. According to a report by Future Market Insights Inc., growing efforts to reduce reliance on Chinese rare earth supplies and boost domestic production are key factors influencing market expansion.

A Critical Mineral for Clean Energy and Defense

Dysprosium plays an essential role in neodymium-iron-boron (NdFeB) magnets, which are vital for EV motors, wind energy systems, and advanced electronic devices. The U.S. push for clean energy and electrification has been accelerating demand for these high-performance magnets. Note the new Trump administration will back out of the green energy new deal, preferring "drill baby drill" and hydrocarbons, and what impact this move will have been yet to be known.

Importantly, China remains the dominant global supplier of dysprosium, posing geopolitical risks and supply chain vulnerabilities.

To counteract this dependency, the U.S. government is investing in rare earth mining and processing through initiatives like the Defense Production Act, which supports domestic extraction and refining projects. Several private companies are also developing new mines and refining capacity to secure a stable supply.

Challenges and Market Uncertainties

Despite strong growth prospects, the dysprosium market faces hurdles

• Price Volatility: The rare earth sector is prone to sudden price swings due to geopolitical instability, trade policies, and fluctuating demand.
• Processing Bottlenecks: While mining projects are increasing, the U.S. still lacks large-scale refining capacity, which limits independence from China.
• Recycling and Alternatives: The search for dysprosium substitutes and recycling technologies is intensifying, particularly in response to supply chain risks. Researchers are working on recovering dysprosium from used electronics and wind turbines, offering a sustainable solution to reduce reliance on virgin materials.

Growth Opportunities in the U.S. Dysprosium Market

Market	Summary
Electric Vehicles	EV adoption accelerates, automakers are demanding stronger, heat-resistant magnets that require dysprosium. Renewable Energy Expansion
Renewable Energy Expansion	The growth of wind energy infrastructure is fueling demand for dysprosium-enhanced magnets in turbine generators.
Government Investment	U.S. agencies, including the Department of Energy and Department of Defense, are providing funding to develop domestic rare earth supply chains.
Recycling Innovations	Companies focusing on dysprosium recovery from waste electronics and industrial byproducts stand to gain.

Competitive Landscape

The U.S. dysprosium sector is highly competitive, with key players working to strengthen supply chains and advance extraction technologies. Major companies involved include:

• Lynas Rare Earths Ltd.
• MP Materials
• China Northern Rare Earth Group
• Hitachi Metals
• Shenghe Resources

Final Thoughts

The U.S. dysprosium market is at a critical inflection point—balancing booming demand with geopolitical supply chain concerns. While government-backed mining projects and recycling innovations offer long-term solutions, processing challenges and price volatility remain obstacles. If the U.S. can develop a stable domestic dysprosium supply, it could significantly reduce reliance on China and strengthen its position in the global rare earth market.