Dyspro-what? Why an obscure element has the EV industry in a panic

Rare-earth mineral dysprosium, used for magnets in EV motors, is among exports China slowed in response to Trump's trade war

- Sean McLain

Caught in the middle of the U.S.-China trade war is a Chiclet-size magnet that is vital to every new electric vehicle on the road.

The magnet is made with dysprosium. Atomic number 66. A rare-earth mineral with a silver metallic luster. More than 90% of refined dysprosium comes from China, and it is used in magnets that power everything from medical equipment to EV motors.

In its retaliation against U.S. tariffs, China slowed exports of several rare-earth minerals and magnets this month, setting off a panic among U.S. automakers.

"You cannot build the motor without the magnet," said a senior automotive executive. "If we want electric-vehicle production to continue to happen in the United States, this has to be solved."

Under the new Chinese rules, U.S. companies have to apply for a license to export the minerals from the Asian country, a monthslong process that leaves carmakers uncertain if they will be able to replenish their supplies of this precious material.

While President Trump has said that his administration is actively talking with Beijing on trade, it couldn't be determined whether such discussions would lead China to soften its stance on these particular exports.

Tesla Chief Executive Elon Musk recently said a lack of the magnets could derail plans to build the Optimus humanoid robot at the company's factory outside Austin, Texas.

"Hopefully, we'll get a license to use the rare-earth magnets," Musk said on the company's earnings call this month. "China wants some assurances that these are not used for military purposes, which obviously they're not."