Highlights

• Dysprosium is a rare earth element crucial for high-performance permanent magnets in electric vehicles, wind turbines, and advanced technologies.
• China currently dominates 90% of dysprosium mining, processing, and magnet production, creating significant global supply chain risks.
• Alternative sources are emerging in Australia, Canada, and other countries.
• Current production from alternative sources is insufficient to challenge China's market control.

---

Dysprosium (Dy), atomic number 66, is a heavy rare earth element primarily used in high-performance permanent magnets, particularly neodymium-iron-boron (NdFeB) magnets. Its addition enhances the magnets' coercivity and thermal stability, making them essential for applications in electric vehicle (EV) motors, wind turbines, and other technologies requiring reliable performance at elevated temperatures.

Asian Metal reports (opens in a new tab) some downward pressure on price. The dysprosium supply chain is heavily concentrated in China, which dominates all stages as shown below:

• Upstream: China accounts for over 90% of global dysprosium mining and refining, with additional contributions from Myanmar and Australia.
• Midstream: China leads in processing dysprosium into oxides, metals, and alloys, benefiting from established infrastructure and expertise.
• Downstream: China manufactures the majority of NdFeB magnets, which are critical components in EVs, wind turbines, and various electronics.

This concentration poses significant risks, as evidenced by recent export restrictions amid U.S.-China trade tensions, leading to supply concerns for industries reliant on dysprosium.

Beyond magnets, dysprosium is utilized in nuclear reactor control rods, data storage devices, lasers, and marine applications due to its magnetic and neutron-absorbing properties. Its scarcity and the complexity of its supply chain underscore the need for diversified sourcing and investment in alternative technologies to mitigate supply disruptions.

U.S. companies currently rely heavily on China for dysprosium, but there are a handful of alternative sources and emerging projects aiming to diversify supply. Here's a breakdown of key alternative sources of dysprosium:

🇦🇺 Australia

• Lynas Rare Earths – Operates the Mount Weld mine, one of the richest rare earth deposits outside China. While light rare earths dominate, heavy rare earths like dysprosium are present in smaller quantities.
• Australian Strategic Materials (ASM) – Developing the Dubbo Project in New South Wales, which contains significant heavy rare earths, including dysprosium, terbium, and yttrium.
• Iluka Resources – Building the Eneabba refinery to process monazite concentrates, which may contain dysprosium and other HREEs.

🇲🇲 Myanmar

• One of the only commercial-scale producers of dysprosium outside China, particularly from clay-hosted deposits in Kachin and northern regions.
• However, the U.S. avoids sourcing from Myanmar due to human rights concerns and geopolitical instability. China is currently the dominant buyer of Myanmar material.

🇨🇦 Canada

• Vital Metals (Nechalacho Project, NWT) – Contains both light and heavy rare earths, including dysprosium, and began limited production. However, refining is still largely done in Asia.
• Ucore Rare Metals (Bokan Mountain, Alaska/Canada border) – Aims to extract dysprosium and other HREEs, supported by U.S. government interest under the Defense Production Act.

🇿🇦 South Africa

• Steenkampskraal Monazite Project – Contains heavy rare earths including dysprosium. Still in early stages of reactivation; potential for non-Chinese supply.

🇺🇸 United States

• MP Materials (Mountain Pass, California) – Currently produces mostly light REEs (LREEs), particularly Nd and Pr. No significant dysprosium production as of now, but may expand capabilities through partnerships and refining.
• DOE-supported HREE recycling projects and Department of Defense contracts are attempting to encourage domestic sources or friendly imports.

Key Strategic Notes:

• Refining remains the bottleneck. Even non-Chinese ores often end up processed in China.
• U.S. industrial policy (DPA, IRA, CHIPS Act) plus President Trump’s executive orders are focused on de-risking by promoting domestic separation, refining, and magnet production.
• Myanmar and China dominate ionic clay HREE production, the most efficient source of dysprosium.

The critical role of dysprosium in modern technologies and the risks associated with supply chain concentration in China cannot be understated. While alternative sources are being developed in countries like Australia, Canada, and the United States, these projects are in various stages of development. They are not yet sufficient to meet global demand independently. Continued investment and policy support are essential to diversify the dysprosium supply chain and mitigate associated risks.