Dysprosium, one of the most important heavy rare earths, is proving its strategic value once again. In 2025 alone, prices have soared from $353/kg in January to $780/kg by September — a remarkable +121% year-to-date gain.

What’s driving this surge? And what does it mean for investors? Let’s break it down.

What is dysprosium?

Dysprosium is a chemical element with the symbol Dy and atomic number 66. It is a rare earth element with a metallic silver luster.

Dysprosium is seldom encountered as a free element in nature and is usually found in minerals such as xenotime, dysprosium-yttrium fluorite, gadolinite and euxenite. 32Dy makes up about 0.06% of the Earth’s crust.

Dysprosium has unusual magnetic properties, and it is dysprosium that gives neodymium-based magnets their exceptional strength compared to other magnets made from only rare-earth metals. This rare earth metal has a high coefficient of thermal expansion and contains phosphate for medical purposes. Applicants in today’s industry include glass plant construction and dysprosium lasers for early diagnosis of prostate cancer.

Dysprosium is also used as an alloying agent in dysprosium iron alloys used in control rods of nuclear reactors because of its neutron-absorbing properties.

Dysprosium’s most important applications are in their infancy, as it will play an integral part in our global transition to low-carbon economies.  It is one of the “energy transition metals” that are essential to many technologies being developed to address climate change.

Why are dysprosium prices rising?

China’s Export Restrictions

In April 2025, Beijing introduced new export controls on heavy rare earths, including dysprosium. Exporters needed special licenses and quotas, causing immediate supply disruption. Within weeks, European dysprosium oxide prices nearly tripled.

Although restrictions were later eased through a temporary suspension and a limited “green channel” for U.S. firms, the episode underscored just how powerful China’s dominance remains.

Growing demand in Green Tech

Dysprosium is indispensable to:

• Electric vehicles – high-performance magnets in EV motors
• Wind turbines – magnets that withstand high temperatures
• Nuclear reactors – shielding and control applications

Analysts expect magnet demand to grow ~5% annually in 2025, driven by EVs and renewables.

Limited alternative supply

While Lynas Rare Earths has become the first producer of heavy rare earths outside China, building fully diversified supply chains will take years. The U.S. is also exploring a $2B CHIPS Act allocation to boost domestic production, but today’s market remains tight.

Price forecast outlook

According to Argus Media forecasts, dysprosium could follow two main paths over the next decade (see graphic in our forecast page:

• Base case: ~$1,100/kg by 2034 (+340% from today)
• Premium case: ~$1,400/kg by 2034 (+450%)

Even with short-term volatility, the long-term trajectory is firmly upward.

What it means for investors

Dysprosium is more than a commodity — it’s a strategic lever in geopolitics and the green transition.

• Early investors in 2025 have already seen gains of +121%.
• Ongoing shortages highlight both the risks and opportunities in rare earth investing.

At Strategic Metals Invest, new dysprosium sales are temporarily paused. However, we are offering existing clients a $780/kg buyback option — locking in extraordinary returns from the $353/kg January price.

Conclusion

Dysprosium’s performance this year is proof of how rare earths can deliver when demand collides with supply risks. With China’s policies in flux and green tech demand accelerating, this market remains one to watch closely.