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The phrase "reduce dependency on" is correct and usable in written English.
You can use this phrase to talk about reducing reliance on something, typically a resource or another person or organization. For example, "The government has instituted new policies to reduce dependency on foreign oil."
Exact(60)
We include as many fossil calibration points as possible in disparate parts of the avian tree to maximize information from the fossil record, and reduce dependency on any one calibration estimate.
Controlling weeds through allelopathy is one strategy to reduce dependency on synthetic herbicides.
I think these sorts of villages could help reduce dependency on the NHS.
To reduce dependency on the south-east Asian rubber trees, the search is on for alternatives.
Hydrofracking may help reduce dependency on foreign oil, but "there is no free lunch," Kolbert says.
Such an achievement might reduce dependency on fossil fuels and strike a blow at global warming.
The device, called a diaphragm pacing system, is intended to reduce dependency on mechanical ventilators.
This would greatly reduce dependency on prohibitively expensive and frequently inappropriate nursing homes.
However, these alternatives are grown in small volumes, so they're more likely to reduce dependency on cotton than replace it.
President Carter, during the Iranian revolution, called an effort to reduce dependency on foreign oil "the moral equivalent of war".
As we reauthorize these important reforms, we must always remember the goal is to reduce dependency on government and offer every American the dignity of a job.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com