USA Rare Earth achieves breakthrough in domestic Dysprosium Oxide production

Texas-based company advances rare earth processing capabilities

USA Rare Earth announced on Tuesday that it has successfully produced a high-purity sample of dysprosium oxide (Dy₂O₃) with a 99.1 wt.% purity. This milestone represents a significant breakthrough in the domestic production of rare earth elements (REEs) in the United States.

The company utilized ore from its Texas Round Top deposit and applied its proprietary rare earth extraction and purification technology, developed at its Wheat Ridge, Colorado, research facility. According to USA Rare Earth, the dysprosium oxide sample was verified by a third-party ISO 17025-certified laboratory, confirming the company’s capability to extract and refine high-purity rare earth oxides domestically.

A Step Toward Reducing Dependence on China

The U.S. rare earths industry remains heavily reliant on China, which controls over 60% of the global $14 billion rare earth magnet market. Currently, the only active rare earths mine in the U.S. is Mountain Pass in California, owned by MP Materials. However, while MP Materials extracts rare earth ores, the refining process is outsourced to China.

USA Rare Earth aims to change this dynamic by establishing a complete domestic rare earth supply chain. The successful production of dysprosium oxide is a crucial step in this direction, as dysprosium plays a vital role in numerous advanced technologies.

Why Dysprosium is Critical

Dysprosium is an essential component of NdFeB (neodymium-iron-boron) magnets, which power high-efficiency electric vehicle motors, wind turbine generators, and advanced defense systems such as missile guidance and control systems. Additionally, dysprosium is critical for high-performance semiconductors and other emerging technologies that rely on the unique properties of heavy rare earth elements.

Expanding Rare Earth Production in the U.S.

USA Rare Earth has also made strides in developing a domestic magnet production capability. This month, the company produced its first batch of sintered permanent rare earth magnets at its Stillwater, Oklahoma, facility, which is currently under development.

“In addition to dysprosium oxide, our team has now produced a variety of rare earth elements, including terbium and the light rare earth element neodymium, among others,” said USA Rare Earth CEO Joshua Ballard in a press release. “We’re excited about the progress we’ve made in bringing this processing capability back home to the United States.”

As geopolitical tensions and supply chain concerns continue to highlight the need for a robust domestic rare earth supply, USA Rare Earth’s advancements could play a pivotal role in securing a more independent and sustainable source of these critical materials for the U.S. economy.