Supply Chain

Dysprosium Supply Chain: From Mine to Market

Dysprosium has the most concentrated supply chain of any magnet rare earth. China and Myanmar together account for ~98% of global production. The primary source is ion-adsorption clay deposits in southern China, which are leached in-situ with ammonium sulfate solutions. Myanmar (Kachin State) has become a significant source feeding Chinese processing plants. Separation of dysprosium from other heavy rare earths requires multi-stage solvent extraction with 50-100+ mixer-settler stages. Virtually all dysprosium separation capacity is in China. The dominant end-use is as an additive (2-10% by weight) in NdFeB permanent magnets to maintain coercivity at elevated temperatures, critical for EV traction motors operating above 150C. Grain boundary diffusion technology is reducing per-unit dysprosium requirements but total demand continues growing with EV production.

Production Geography

Global Dysprosium production is led by China, which accounts for approximately 98% of world output, followed by Myanmar. The full list of major producing nations includes China, Myanmar, Australia. This geographic concentration means that disruptions in key producing regions can have outsized impacts on global supply and pricing.

Extraction Methods

Dysprosium is extracted using the following primary methods:

• Ion-adsorption clay leaching (primary for heavy REE)
• Byproduct of bastnasite/monazite mining

Processing and Intermediate Products

Dysprosium is primarily sourced from Ion-adsorption clays (highest Dy content), Xenotime (YPO4), Monazite. After extraction, the raw material undergoes multiple processing steps including beneficiation, chemical treatment, and refining to reach the purity levels required by downstream industries. Typical ore grades range from 0.01-0.1% Dy2O3.

Key Supply Chain Participants

The Dysprosium supply chain involves these major companies:

Supply Chain Vulnerabilities

Key vulnerabilities in the Dysprosium supply chain include concentration of 98% of production in China, limited processing capacity diversification, and long lead times for new mining projects. The high supply risk rating reflects the severity of these concentration risks and the difficulty of rapidly establishing alternative supply sources.