ZGXT(SZ:000831) Sou Hu Cai Jing·2026-02-04 07:05Core Viewpoint - The article discusses Japan's recent efforts to extract rare earth elements from the seabed, highlighting the challenges and costs associated with this endeavor, particularly in the context of Japan's reliance on China for these resources [3][7][11]. Group 1: Rare Earth Elements Extraction - Japan's ocean research agency successfully extracted several tons of rare earth-containing mud from the seabed at a depth of approximately 5,600 meters [3]. - The extraction process faced significant challenges, including adverse weather conditions that temporarily halted operations [3]. - The extracted rare earth mud may not meet the minimum standards required for refining, leading to concerns about its economic viability [3]. Group 2: Economic Implications - The cost of extracting rare earth mud from the South Bird Island area is reported to be several times, even tens of times, higher than the price of processed rare earth products from China [3]. - Japan's historical dependence on China for over 70% of its rare earth needs has been jeopardized due to deteriorating Sino-Japanese relations [7]. - The potential for China to impose strict export controls on rare earth elements could have devastating impacts on Japan's industrial sector, potentially leading to a halt in industrial activities within six months [7]. Group 3: Strategic Considerations - Japan's lack of large-scale land-based rare earth mining capabilities has led it to explore deep-sea extraction, but the high costs and lack of core refining technology hinder its competitive position [5]. - The article suggests that Japan may soon need to engage in negotiations with China regarding rare earth purchases, as the geopolitical landscape shifts [9]. - China's strategic control over rare earth elements positions it favorably in international relations, allowing it to leverage these resources for economic and political gain [11].