In a short series to kick off 2022, the Investor Insight team takes a look at some of the critical elements of the periodic table, how they affect our lives today and into tomorrow and what our clients are doing in this exciting space.
Like with the majority of rare earth elements, dysprosium’s main use is in alloys for neodymium-based magnets due to its resistance to demagnetisation at high temperatures.
This property is important for magnets used in motors or generators, being used in wind turbines and electric vehicles.
Currently, 98% of global dysprosium production comes from China though increased EV production is driving demand growth across the board. Due to this and a decrease in Chinese production of 34% since 2013 following crackdowns on illegal miners, there is ample opportunity in the ex-China market to meet the growing demand.
Add to that the continued geopolitical tension that has seen an increased focus on a security of supply of key materials – code for reducing reliance on Chinese supply, akin to the moves afoot by China to diversity its iron ore supply away from a reliance on Australia – and investors are champing at the bit to support new players such as Northern Minerals.
The Perth company’s Browns Range heavy rare earth project in WA’s Kimberley region is the only advanced dysprosium project globally that can address this looming supply gap, with a research report by independent consultancy Adamas Intelligence highlighting the pervasive global use of dysprosium and limited options for supply growth in the short term.
Efforts are underway to significantly add to what is already an impressive mineral resource at the same time as advancing research and technical studies into the downstream processing requirements to be able to reliably supply a world-class quantum of dysprosium.