Dysprosium

An essential element of permanent magnets that are vital components of motors used in electric vehicles and wind turbines.

Dysprosium is a Rare Earth Element (REE) mainly used in the manufacturing of permanent magnets. These are essential components of wind turbines and electric vehicles, thus making dysprosium critical to the energy transition. China dominates dysprosium extraction and refining, creating a strategic advantage and contributing to the establishment of the metal as a critical material for both the United States and European Union. Myanmar is also a major source of dysprosium, which creates a supply chain risk due to that country’s continuing political crisis.

Dysprosium has relatively low exposure to ESG risks in public reporting due to its obscurity and because REEs are often mentioned only as a group in media and NGO reporting. However, scrutiny over the environmental impacts of REE mining in China is likely to increase, and the current context in 2025 of heightened concern over REE supply chains increases the potential for scrutiny.

Main uses and applications

The primary use of dysprosium oxide is as a key component in neodymium-iron-boron (NdFeB) alloy permanent magnets. Dysprosium increases the alloy’s resistance to demagnetisation and improves its performance under high temperatures of up to 200°C.

NdFeB magnets are commonly found in electric motors and generators, with applications in electric mobility, industrial robots, pumps, consumer appliances, and electronic goods with additional uses such as in smartphone speakers. These magnets are also vital parts of wind turbines generators and the motors for hybrid, plug-in and pure electric vehicles.