Dysprosium (Dy)

Dysprosium is a Rare Earth Element (REE) mainly used in the manufacturing of permanent magnets. These are essential components of wind turbines and electric vehicles, thus making dysprosium critical to the green energy transition. China dominates dysprosium and rare earth metal extraction and refining, creating a strategic advantage and contributing to the establishment of the metal as a critical material for both the United States and European Union. Myanmar is also a major source of dysprosium, which creates a supply chain resilience risk due to that country’s continuing political crisis.  

TDi’s ESG data indicates that Dysprosium has a very low perceived exposure to ESG risks because of its dysprosium’s obscurity and because REEs are often addressed only as a group in media and NGO reporting. The establishment of new projects in countries such as Australia and Greenland has resulted in opposition from community groups over perceived social and environmental risks. However, such projects in countries with relatively strong environmental controls would also lower the risk of downstream companies being linked to the major environmental impacts of REE mining in China and Myanmar.