ZGXT(SZ:000831) Sou Hu Cai Jing·2025-07-17 14:46Core Viewpoint - Lynas Corporation from Australia has gained global attention by announcing its ability to commercially produce "dysprosium oxide" and reportedly recruiting a team from China's rare earth sector [1][5]. Group 1: Talent and Human Resources - The recruitment of a few individuals from China does not equate to a significant shift in the industry, as China's rare earth talent pool is vast and not defined by a single team [2][4]. - China has a robust talent cultivation mechanism, with universities continuously supplying new talent to the industry through hands-on training [4]. Group 2: Technological and Systemic Advantages - China's technological advantages are not limited to isolated points but encompass a comprehensive system developed over decades, starting from the "cascade extraction theory" established in the 1970s [7]. - The complete industrial chain in China allows for efficient processing from mining to application, which is a stark contrast to Australia's fragmented approach [10][12]. Group 3: Supply Chain and Market Dynamics - Australia's supply chain is vulnerable due to its reliance on global logistics, which can lead to high costs and risks if any part of the chain encounters issues [14]. - China, being the largest producer and reserve holder of rare earths, has strategic storage capabilities that can influence global market supply and pricing [16]. Group 4: Market Viability and Competition - The primary question remains: who will purchase the products produced by Lynas, given that China is the largest market for rare earth applications [18][21]. - China's established supply chain offers stability and cost-effectiveness, making it unlikely for businesses to switch to more expensive and longer supply routes from Australia [18][20]. Group 5: By-products and Economic Viability - China has a complete industrial chain that allows for the sale of by-products generated during rare earth processing, a capability that Australia lacks [23].