Rare earth elements aren’t often in the news, but they are quietly powering some of the most important technologies we use today from electric vehicles (EVs) to wind turbines, smartphones, and even military equipment. One of these lesser-known yet highly critical materials is dysprosium.

In the second quarter (Q2) of 2025, dysprosium prices made a big leap. According to PriceWatch, the price of dysprosium increased by $303,443 per metric ton, which is about a 3.96% rise, based on Free On Board (FOB) prices in Shanghai. This wasn’t just a small fluctuation it was a sign of deeper issues in the global supply chain and increasing tensions between countries.

In this article, we’ll break down what dysprosium is, why its price is going up, what’s causing the disruption, and what it might mean for the future—all in simple, natural language.

What Is Dysprosium and Why Is It Important?

Dysprosium is one of the heavy rare earth elements. Though it's not a metal we hear about often, it plays a major role in today’s technology. Here’s where you’ll find it:

• Electric Vehicles (EVs): Dysprosium is used in magnets that are part of electric motors. These magnets help make motors smaller, stronger, and more efficient.

• Wind Turbines: Similar to EVs, turbines use high-performance magnets containing dysprosium.

• Defense and Military Tech: Drones, missiles, and other defense tools often rely on dysprosium-based components.

• Electronics: It’s also found in smaller devices like hard drives and smartphones.

Basically, without dysprosium, many of the clean energy and high-tech devices we rely on every day would struggle to function or wouldn’t exist at all in their current form.

For latest updates, price queries, demand forecasts, and supplier information related to Dysprosium prices, submit your request here: https://www.price-watch.ai/contact/

What Happened in Q2 2025?

Let’s go back to the key number: a $303,443 increase per metric ton, or a 3.96% price rise. That’s a big jump in a short amount of time. So, what caused it?

Based on PriceWatch’s latest report, here are the main reasons:

1. Geopolitical Tensions Between China and the U.S.

One of the biggest drivers of this price surge is the ongoing trade conflict between China and the United States.

China is the world’s dominant supplier of dysprosium. It controls a huge share of the mining, refining, and exporting of this rare earth element. But in 2025, tensions between China and the U.S. worsened. In response, China tightened its export controls, especially on heavy rare earths like dysprosium.

Export controls mean fewer materials are being shipped out of China, and those that are might come with stricter conditions or require special permits. This instantly creates a sense of scarcity, especially for countries that depend on China for supply. Fewer exports mean higher prices globally.

2. Tariffs and Permits Create Urgency

To make matters more complicated, new tariffs were introduced. These are taxes on goods being traded between countries, and they make dysprosium even more expensive for foreign buyers.

At the same time, the need to secure export permits in China caused delays and uncertainty. When companies aren’t sure if they’ll be able to get enough material in the future, they tend to buy more now—a behavior known as stockpiling.

This creates artificial demand in the short term. It’s not that everyone suddenly needs more dysprosium; it’s that buyers want to protect themselves from future shortages. This spike in demand only pushes prices higher.

3. Environmental Crackdowns in China’s Jiangxi Province

Another layer to the story comes from inside China, particularly the Jiangxi province, which is a major production area for heavy rare earths.

In recent months, the Chinese government has been taking stronger actions on environmental regulations, especially against illegal or unsafe mining practices. While this is a good thing for the environment, it also means that many mining operations were shut down or slowed.

Less mining = less dysprosium produced = tighter supply = higher prices.

4. Political Instability in Myanmar

Outside of China, Myanmar is another source of rare earth materials. However, Myanmar has been facing political instability and civil unrest, which has disrupted its mining and export activities.

With both China tightening controls and Myanmar facing instability, the world’s two biggest sources of dysprosium became harder to access at the same time. That’s a recipe for a global shortage.

5. Western Nations Are Still Playing Catch-Up

Countries in the West like the U.S., Canada, and those in Europe are investing in their own rare earth supply chains. This includes opening new mines, building processing facilities, and developing recycling systems.

But here’s the thing: these efforts take years, and we’re not there yet. In the meantime, industries in the West still depend heavily on Chinese supply.

So when China makes a move like restricting exports or raising tariffs, the rest of the world feels the impact immediately. The West simply doesn’t have a backup plan that’s ready to go right now.

What Does All This Mean for Industry and Consumers?

For industries that rely on dysprosium like electric vehicle makers, renewable energy companies, and defense contractors this price surge is a warning sign.

• Higher production costs: Companies now have to spend more to get the same material.

• Slower production: If they can’t secure enough dysprosium, projects could be delayed.

• Price increases: Eventually, some of these higher costs may be passed on to consumers through more expensive products.

What’s Next? Is This the New Normal?

The 3.96% increase in Q2 2025 might just be the beginning. Dysprosium, like many rare earths, is not just a commodity it’s also a strategic resource. Countries are beginning to treat it like oil or gas, something that affects national security and energy independence.

Until new supply chains are fully built outside China, and unless global trade tensions cool down, we might continue to see price volatility, supply risk, and geopolitical influence driving dysprosium’s market behavior.

Also read: Hydrogen Powers India’s Green Steel Revolution

In other words, we’re likely to see continued uncertainty around dysprosium pricing for the foreseeable future.

• Dysprosium is a rare earth metal used in electric cars, wind turbines, and military gear.

• In Q2 2025, the price jumped $303,443 per metric ton, a 3.96% increase.

• This was mainly due to China’s tighter export rules, trade tariffs, environmental crackdowns, and instability in Myanmar.

• Other countries are working on alternative sources, but those will take time to be ready.

• Until then, the market may stay unstable, and prices could keep rising.