Chan Ye Xin Xi Wang·2025-08-08 01:29Industry Overview - The price of dysprosium oxide in China remained above 2 million yuan per ton from 2021 to 2023, driven by explosive growth in the global electric vehicle industry leading to supply-demand imbalances [1][7] - As a key additive in neodymium-iron-boron permanent magnets, the demand for dysprosium surged with the increase in electric vehicle production, while supply chain responses lagged, causing temporary supply shortages and irrational price increases [1][7] - By mid-2025, dysprosium prices fell to 1.615 million yuan per ton, a year-on-year decrease of 11.26%, due to multiple factors including increased global rare earth mining capacity and technological advancements reducing production costs [1][7] Industry Chain - The upstream of the dysprosium industry chain includes raw materials and production equipment, with raw materials primarily being rare earth mineral resources [4] - The midstream involves the production and manufacturing of dysprosium, while the downstream applications include magnetic materials, laser technology, electronics, new energy batteries, aerospace, and medical devices [4] Market Dynamics - Global rare earth reserves are approximately 90 million tons, with China holding 44 million tons, accounting for 48.9% of the total [6][7] - In 2024, China produced 270,000 tons of rare earths, representing 69.2% of global production, ensuring a stable supply for dysprosium production [6][7] Key Companies - China Rare Earth Group has an annual dysprosium production capacity of about 300 tons, with a product purity of 99.99% [11] - Guangsheng Nonferrous Metals, the only rare earth mining rights holder in Guangdong, produced 900 tons of dysprosium in 2023, expected to increase to 1,100 tons by 2025 [11] - Northern Rare Earth is a leading producer with a dysprosium output of 1,000 tons in 2023, projected to rise to 1,200 tons by 2025 [11] Industry Trends - The Chinese government is enhancing regulation of the rare earth industry, promoting integration and green transformation, with new policies aimed at protecting and rationally utilizing rare earth resources [17] - Technological innovations, such as the successful trial of the "physical vapor deposition combined with grain boundary diffusion method," have reduced dysprosium usage by 70% while improving magnetic properties [18][19] - The rapid development of global electric vehicles, wind power, and humanoid robots is creating new growth points for the dysprosium industry, with electric vehicles being a major demand driver [20]