LS Eco Energy Builds Non-China Production Base for Defense-Grade Rare Earth Materials
LS Eco Energy is moving into the production of defense-grade rare earth metals in Vietnam as it seeks to establish a non-China supply chain for strategic materials used in aerospace and defense applications.The company said it will invest 11.6 billion won ($8 million) to build a samarium metal produ
LS Eco Energy is establishing a non-China production base for defense-grade rare earth materials in Vietnam, investing 11.6 billion won ($8 million) in a samarium metal production facility. The facility, to be constructed at its LSCV manufacturing site in Ho Chi Minh City, will have an annual capacity of 240 tons of samarium metal, supporting the production of 700 to 1,000 tons of samarium-cobalt permanent magnets per year.
Samarium is crucial for high-temperature permanent magnets used in aerospace and defense applications, such as fighter aircraft and missiles. The U.S. is tightening restrictions on Chinese materials in defense procurement, starting in January 2027, creating a demand for alternative rare earth sources outside China. LS Eco Energy aims to position its Vietnamese facility as an early production base to adapt to this shift.
The company is partnering with Australian rare earth producer Lynas, with Lynas providing rare earth feedstock and LS Eco Energy processing it into metal in Vietnam. This supply chain will then deliver the material to LS Cable & System's permanent magnet operations. The project also expands LS Eco Energy's business beyond power cables into strategic materials, leveraging its existing manufacturing infrastructure in Vietnam.
LS Eco Energy plans to expand its rare earth portfolio, adding dysprosium, terbium, and neodymium-praseodymium to its production offerings.
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