Heavy rare earth elements (HREEs) such as dysprosium (Dy) and terbium (Tb) play a vital role in the production of high-performance permanent magnets used across electric vehicles (EVs), wind turbine generators, aerospace systems, and defence technologies. These elements enhance magnetic stability and heat resistance, making them indispensable to the next generation of clean energy systems and motion-critical technologies. As demand accelerates, securing a resilient supply of heavy rare earths has become a strategic priority for both industrial manufacturers and global policymakers.
Resource grows from
780 Mt to 1.1 Bt, a 40%
increase
Contained TREO metal
tonnes increase by 36%
MREO resource
tonnage increases by
83% to 105 Mt
Contained MREO
metals tonnes increase
by 78%
Inferred Mineral Resource, July 2025 - ERM Australia Consultants Pty Ltd (“ERM”).
Heavy rare earth elements—notably dysprosium (Dy), terbium (Tb), and yttrium (Y)—are fundamental to technologies that require exceptional thermal stability, magnetic strength, and material durability. These properties make them critical to the development of high-performance magnets, specialty lighting systems, and precision medical imaging.
In sectors such as aerospace, defence, and electric mobility, these elements are relied upon for their ability to perform in extreme environments, including high-temperature and high-stress conditions. Their contribution to energy-efficient engineering and mission-critical systems underpins many of today’s most advanced innovations.
Beyond industrial applications, heavy rare earths hold strategic significance for national security, supply chain resilience, and technological sovereignty. Their scarcity, paired with rising global demand, reinforces their role as essential resources for both economic competitiveness and geopolitical stability.
Heavy rare earth elements (HREEs)—including dysprosium (Dy), terbium (Tb), and yttrium (Y)—are essential to the performance of permanent magnets, lasers, and aerospace systems. Their unique properties enable critical advancements in electric vehicles, wind turbine generators, and defence technologies, making them strategic enablers of both clean energy transition and national security.
HREEs are primarily mined in China, Myanmar, and Australia, with refining capacity still heavily concentrated in China. As demand for electrification and renewable energy systems accelerates, global supply chains face increasing pressure—prompting urgent investment in recycling, responsible exploration, and materials innovation.
This section outlines the core functions of heavy rare earths, where they’re sourced, the supply challenges they present, and the technological shifts reshaping how they are used—clarifying why HREEs are becoming indispensable to a low-carbon, high-security future.
Heavy rare earth elements (HREEs) like dysprosium, terbium, and yttrium are used in electric vehicles, wind turbines, military systems, medical imaging, and laser technologies. They enable heat-resistant magnets, high-brightness displays, and advanced aerospace materials.
Heavy rare earths are a subgroup of rare earth elements with higher atomic weights, including Dy, Tb, Ho, Er, Tm, Yb, Lu, and Yttrium. They are less abundant and typically used in high-performance and high-temperature applications.
HREEs are primarily mined in China, Myanmar, and Australia, with ion-adsorption clay deposits being the main source. China dominates both production and refining, although new exploration is underway in Africa, North America, and Europe.
Supply chains are vulnerable due to geopolitical concentration, limited refining capacity outside China, and rising global demand from clean tech and defence sectors. These risks are driving efforts to secure alternative sources and invest in REE recycling.
Alternatives like ferrite magnets, iron-nitride compounds, and magnet-free technologies are in development, but often lack the performance and thermal stability of HREE-based systems. Research continues into substitution, efficiency gains, and hybrid materials.
Heavy rare earths are classified as critical minerals due to their essential role in clean energy, defence, and advanced technologies. Their limited availability and concentrated supply make them strategically important for national security, economic competitiveness, and technological independence.
The most critical heavy rare earth elements (HREEs) include dysprosium (Dy), terbium (Tb), and yttrium (Y)—each playing a specialised role in strengthening high-performance magnets, enhancing thermal resistance, and enabling advanced material applications. These elements are indispensable in sectors where durability, heat tolerance, and precision are paramount, such as electric mobility, defence systems, aerospace, and clean energy infrastructure.
While Dy and Tb improve the stability and efficiency of NdFeB magnets under extreme temperatures, yttrium supports breakthroughs in lasers, sensors, and medical imaging. Together, these heavy rare earths form the backbone of technologies designed for the world’s most demanding environments.
Europium is a critical component in phosphor-based LED lighting, television screens, and computer displays, where it delivers vibrant red and blue emissions. Its unique luminescent properties make it essential to the performance of modern lighting and digital visual technologies.
As demand grows for energy-efficient lighting and high-resolution displays, europium’s strategic importance continues to rise. For exploration companies, europium offers a gateway into electronics and renewable energy supply chains.
Gadolinium plays a vital role in medical imaging as a key material in MRI contrast agents, and is also used in nuclear reactor shielding and high-performance alloys. Its distinctive magnetic and neutron-absorbing properties make it indispensable in healthcare, nuclear energy, and specialised engineering.
Mining gadolinium gives exploration companies access to a high-value niche resource with cross-sector applications in advanced technologies.
Terbium is used in green phosphors for flat-panel displays and efficient lighting, as well as in NdFeB magnets to improve thermal stability in EVs, wind turbines, and defence systems. Its multifunctional role links it directly to the advancement of clean energy and digital technology.
For exploration companies, terbium represents a rare and strategically vital material driving sustainable innovation and high-growth sectors.
Dysprosium plays a critical role in enhancing the thermal stability of NdFeB magnets used in electric vehicles, wind turbines, and defence technologies. It ensures magnets maintain performance in high-temperature and extreme-condition environments.
As electrification expands, dysprosium’s relevance continues to grow. For exploration companies, it represents a strategic entry point into clean energy and advanced manufacturing markets.
Holmium is valued for its exceptional magnetic properties, making it vital in scientific instrumentation, magnetic flux concentrators, and laser technologies. It also contributes to specialised high-strength alloys used in nuclear and precision systems.
Though used in smaller volumes, holmium is essential for cutting-edge research, offering exploration companies access to high-tech, high-precision market segments.
Thulium is used in portable X-ray devices, surgical lasers, and select nuclear reactor components, offering compact energy solutions in space-constrained applications. Its efficiency in radiation emission and targeted medical imaging makes it valuable for healthcare and scientific instrumentation.
For exploration companies, thulium represents a rare entry point into advanced medical and clean energy technologies.
Ytterbium supports innovations in fibre-optic networks, stress monitoring systems, and solid-state lasers. Its sensitivity to pressure and light makes it ideal for precision sensing, communications, and materials testing.
As demand grows for digital infrastructure and industrial automation, mining ytterbium allows exploration companies to serve high-tech and data-driven sectors.
Rare earth elements are essential to modern life — from smartphones and EVs to renewable energy systems and defence technologies. Yet not all rare earths offer the same strategic value.
If you’re exploring how these materials can support your operations, investments, or supply strategy, our team would be happy to talk.
Used to create high-strength permanent magnets, these elements — especially Nd, Pr, Dy, and Tb — are vital for EV motors, wind turbines, and advanced motion systems.
Critical for thermal stability and magnetic durability, heavy rare earths like dysprosium and terbium enhance performance in aerospace, defence, and extreme-environment technologies.
With roles in catalysts, batteries, and phosphors, light rare earths power everything from hybrid vehicles to clean fuel production — forming the foundation of mass-scale modern tech.