Dysprosium
Overview
Dysprosium is crucial for creating high-performance magnets that maintain their magnetic properties at high temperatures. This makes it essential for electric vehicles, wind turbines, and other advanced technologies. It's one of the rare earth elements most at risk of supply shortages, with China controlling much of the global production.
Appearance
Silvery-white, soft metal
Electron Configuration
[Xe] 4f¹⁰6s²
Density
8.540 g/cm³
Melting Point
1412°C
Discovery
Discovery Timeline
Primary Uses
- High-powered magnets
- Nuclear reactor control rods
- Data storage devices
- Electric vehicles
Application Sectors
Economic Value
Current Price
$360 per kg
Price Trend
Supply Risk
Primary Producers
Investing in Dysprosium
- Dysprosium oxide (99.9%) trades at US $360-420 /kg FOB China (≈ US $0.39 /g) as of May 2025.
- European spot prices reach US $480-520 /kg due to supply chain security premiums.
- Asian Metal's index shows high volatility driven by EV magnet demand and Chinese export policies.
- Small-lot investors face 40-50% premiums above bulk prices due to limited availability.
- Metal prices carry 45-50% premium over oxide due to complex processing and purity requirements.
How to Get Exposure
| Route | Why It Appeals | Watch-outs |
|---|---|---|
| Physical metal/oxide | Direct exposure to EV and wind turbine growth | Storage complexity, price volatility |
| Mining stocks | Operational leverage to price increases | Limited pure-play options, geopolitical risks |
| ETFs | Diversified rare earth exposure | Minimal Dy-specific exposure, broad market risks |
Market Outlook
- Electric vehicle magnet demand driving structural growth in consumption.
- Wind turbine installations creating sustained baseline demand.
- Supply remains critically concentrated in China (>90% of production).
- Recycling initiatives expanding but still below 5% of total supply.
- New mining projects in Australia and Canada face 5-7 year development timelines.
- Strategic stockpiling by governments adding to demand pressures.
FAQs
Why invest in Dysprosium?
Dysprosium is critical for high-performance magnets in electric vehicles and wind turbines, offering leveraged exposure to the clean energy transition with severe supply constraints.
How volatile is the Dysprosium market?
Extremely volatile - prices can swing 30-50% based on Chinese export policies, EV demand shifts, and geopolitical tensions. Consider it a high-risk, high-reward allocation.
What are the main investment risks?
Supply concentration in China, potential substitution by other materials, cyclical demand from auto industry, and regulatory changes affecting rare earth exports.
How much Dysprosium should I allocate?
Most advisors suggest keeping rare earth metals (including Dy) to 1-3% of total portfolio due to volatility and concentration risks.
Disclaimer: Market data is indicative and updates frequently; nothing here constitutes financial advice.