Dysprosium
A heavy rare earth added to magnets to preserve performance at high operating temperatures.
Why it matters
Without dysprosium, magnets demagnetise in hot EV motors and defence applications. Tiny volumes, outsized strategic weight.
Supply and sustainability
- Applications
- High-temperature permanent magnets, EV traction motors, Defence actuators, Nuclear control rods
- Supply risk
- Very high. Heavy rare earth supply is far more concentrated than light rare earths.
- Geopolitics
- Supply originates largely from ionic clay deposits in southern China and Myanmar, with separation in China.
- Substitutes
- Grain boundary diffusion techniques dramatically reduce dysprosium loading per magnet.
- Recycling
- Low, though heavy rare earth recovery is a priority for magnet recyclers.
- Sustainability
- Ionic clay extraction has caused significant in-situ leaching damage and water contamination.
- Forecast
- Demand growth moderated by thrifting, but ex-China heavy rare earth supply remains scarce.
- Key countries
- 3 tracked producer and processing roles
Earthern Strategic Score 93
Version v0.1
- Demand Outlook
- 97 (weight 1.2) — Projected demand growth relative to the broader mineral economy over the next decade.
- Supply Risk
- 89 (weight 1.2) — Likelihood of supply falling short of demand, accounting for project pipeline and lead times.
- Geographic Concentration
- 99 (weight 1) — How concentrated mining and processing are across countries and companies.
- Geopolitical Risk
- 92 (weight 1) — Exposure to export controls, sanctions and jurisdictional instability.
- Technology Importance
- 99 (weight 1.1) — How central the mineral is to strategically important technologies.
- Strategic Importance
- 92 (weight 1) — Recognition in national critical mineral lists and defence supply chains.
- Substitutability
- 84 (weight 0.8) — How readily the mineral can be replaced without material performance loss. Higher is harder to substitute.
- Recycling Potential
- 86 (weight 0.7) — Ability of secondary supply to relieve primary demand. Higher means less relief available.
Mines, projects and refineries
Bayan Obo
The largest rare earth deposit in the world, mined alongside iron ore.
refinery · ChinaGanzhou Separation Complex
The centre of global heavy rare earth separation capacity.
refinery · MalaysiaLynas Advanced Materials Plant
The largest rare earth separation facility outside China.
mine · AustraliaMount Weld
One of the highest-grade rare earth deposits in the world, feeding Lynas separation capacity.
processing · United StatesMP Independence Magnetics Facility
A US NdFeB magnet manufacturing facility completing a domestic rare earth loop.
deposit · SwedenNorra Karr
A heavy rare earth enriched deposit and one of Europes most strategically discussed resources.
Related intelligence
Heavy rare earth separation, not mining, remains the bottleneck
Western rare earth strategy has focused on deposits. The constraint has always been further down the chain.
Jun 17, 2026How far can Europe get toward rare earth independence?
Europe has deposits, low-carbon power and magnet demand. It lacks separation.
Related minerals
Neodymium
A light rare earth element and the backbone of high-performance NdFeB permanent magnets.
Rare EarthsTerbium
A scarce heavy rare earth used in high-temperature magnets and phosphors.
Rare EarthsPraseodymium
A light rare earth usually produced and traded jointly with neodymium as NdPr oxide.