28 April 2026

Dysprosium: is magnet technology reducing demand?

Key insights from this briefing

How much can grain-boundary diffusion reduce dysprosium use?

Grain-boundary diffusion can reduce dysprosium or terbium consumption by roughly 30 to 50% per magnet by placing the heavy rare earth mainly at grain boundaries, where it has the greatest effect on coercivity.

When can terbium substitute for dysprosium in permanent magnets?

Terbium can provide a stronger coercivity improvement per kilogram, but it is substantially more expensive. Manufacturers therefore tend to use terbium selectively or blend it with dysprosium rather than substitute it wholesale.

Excerpt from this briefing's Industry Insight

Magnet manufacturers are reducing dysprosium intensity through engineering. Grain-boundary diffusion places dysprosium or terbium only where it is needed inside an NdFeB magnet, reducing heavy rare earth consumption by roughly 30 to 50% while preserving high-temperature coercivity. Terbium can perform a similar role at a much higher cost, while magnet-free motor designs remove heavy rare earths from some applications but involve trade-offs in efficiency and power density. The main trend is more efficient use of dysprosium rather than its disappearance from demanding EV, wind and defence motor applications.

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