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Highlights
- Terbium demand grows amid export cuts by China
- Critical role in defence tech boosts global focus
- Australian projects emerging as key suppliers
Following the market excitement around gallium, attention is now turning toward another rare earth element: terbium. A surge in demand, driven by its strategic importance in high-tech and defence applications, is placing terbium in the spotlight—especially as China, the world's top producer, tightens control over its exports.
China recently removed terbium from its list of rare earth elements available for export. This move echoes its earlier restrictions on gallium and signals a shift in global trade dynamics, with significant implications for countries dependent on these materials. As a result, markets are closely watching developments around terbium, which is one of the least abundant and hardest-to-source rare earth elements.
Terbium plays a vital role in the defence sector. It enhances the performance of neodymium-iron-boron magnets, which are used in critical systems including aircraft, submarines, and missiles. The US Department of Defense has highlighted terbium’s contribution to temperature stability in these components—an essential trait for military-grade equipment.
Beyond defence, terbium is used in a variety of technologies, such as green phosphors for display screens, magnetostrictive alloys, and solid-state devices. Its versatility makes it a key ingredient in modern electronics and emerging innovations.
While China has long dominated production, other nations are positioning themselves to increase their share of the terbium market. Australia, in particular, has become an important player, with several projects aiming to develop efficient extraction technologies. The country currently holds about 4% of global rare earth reserves and is at the forefront of research aimed at lowering costs and speeding up production timelines.
Market Research Intellect estimates the global terbium market was worth around $7.8 billion in 2023 and is projected to grow to approximately $27.6 billion by 2031, representing a compound annual growth rate of over 11%.
Several Australian companies are advancing projects with notable terbium components. Northern Minerals (ASX:NTU) is progressing its Browns Range project in Western Australia, targeting both terbium and dysprosium. Australian Strategic Materials (ASX:ASM) is developing the Dubbo project in New South Wales, which includes up to 15 separated rare earth elements, among them terbium. Meanwhile, Victory Metals (ASX:VTM) is exploring a clay-hosted rare earth deposit in the Cue region of WA, with terbium as part of its resource base.
As global interest in critical minerals accelerates, terbium is shaping up to be a strategic element with strong long-term potential—especially as supply chains look to diversify beyond China.
