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China Conducting Deep-Sea Mining for Rare Earth Elements in South China Sea, Controls 60% of Global Production

2026-07-03 01:12:14

According to discussions held on June 29 in connection with the 10th anniversary of the 2016 arbitral award, China is conducting deep-sea mining operations in the South China Sea, particularly in areas including Bajo de Masinloc and Ayungin Shoal, to extract rare earth elements (REEs). These heavy metals—including yttrium, lanthanum, cerium, and neodymium—are critical components for semiconductor manufacturing, medical equipment such as MRI machines, solar panels, and aeronautics. China retains a dominant global monopoly on REEs, controlling approximately 60% of global mine production and over 90% of refining and magnet manufacturing. Industry experts suggest China's strategic focus on deep-sea REE extraction in the disputed waters represents a key driver behind its territorial assertions in the West Philippine Sea, beyond traditional geopolitical concerns.

Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.

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