CNRE(SH:600111) Sou Hu Cai Jing·2025-05-25 00:01Core Viewpoint - The article critiques Lynas Corporation's claims of being a leading non-Chinese rare earth separation company, highlighting that their technology and production capabilities are significantly inferior to China's, despite Western media hype [1][3][10]. Group 1: Technology and Production Capabilities - Lynas's production line in Malaysia is described as outdated, with claims of a "heavy rare earth breakthrough" being likened to cosmetic upgrades rather than genuine technological advancements [3]. - China's advanced "cascade extraction technology" allows for the precise separation of 17 rare earth elements, achieving purity levels down to five decimal places, while Lynas's solvent extraction method fails to reach 90% purity [3][10]. - The article asserts that Lynas's claimed "independent patents" are largely derived from knowledge acquired from a bankrupt Chinese company, undermining their innovation claims [3][10]. Group 2: Cost and Production Efficiency - The cost of producing one kilogram of dysprosium oxide at Lynas is $15, compared to just $4 for the same product from China, highlighting a significant cost disadvantage [5]. - Lynas's environmental measures account for 40% of their total investment, leading to higher operational costs, while China's automated production lines operate more efficiently and at lower costs [5][10]. - Lynas's annual production capacity of 1,500 tons is dwarfed by China's North Rare Earth Group, which can produce over 10,000 tons from a single facility [5][10]. Group 3: Western Supply Chain Challenges - The article discusses the flawed nature of Western efforts to establish a rare earth supply chain, citing the limited rare earth reserves in Saudi Arabia and the reliance on China for processing [8]. - Companies like MP Materials are criticized for exporting a significant portion of their mined materials back to China for processing, undermining the goal of reducing dependence on Chinese supply [8]. - European companies face similar challenges, with high labor costs making local recycling efforts unviable compared to purchasing new materials from China [8]. Group 4: China's Dominance and Future Outlook - China's control over the rare earth supply chain is attributed to its unique "in-situ leaching" technology, which allows for efficient extraction without extensive mining [10]. - The article emphasizes that China holds over 4,000 rare earth patents, creating a significant barrier for competitors like Lynas to catch up [10]. - The Pentagon's concerns about dwindling rare earth inventories and the inability to meet production demands for military applications underscore the urgency of the situation, with potential implications for future defense capabilities [12].