Used in the production of dysprosium metal through electrolysis or metallothermic reduction, which is essential for manufacturing high-performance permanent magnets. These magnets are critical components in electric vehicle motors, wind turbine generators, and various advanced electronic devices due to their strong magnetic properties at high temperatures. Also serves as a dopant in solid-state devices and optical materials, enhancing performance in lasers and fiber optics. Additionally, employed in research settings for developing new magnetic and luminescent compounds.