LS Eco Energy Builds Vietnam Rare Earth Base

LS Eco Energy has announced plans to invest 11.6 billion won in constructing a samarium metal production facility in Ho Chi Minh City, Vietnam. This preemptive move comes in response to the United States expanding supply chain regulations for samarium-cobalt (SmCo) permanent magnets, requiring raw materials starting from January 2027.

Samarium metal is crucial for SmCo magnets, which retain strong magnetic force even at high temperatures, making this facility significant for the defense sector that has largely depended on Chinese supply chains.

The new plant will be capable of producing around 240 tons of samarium metal each year, enough to manufacture 700 to 1,000 tons of SmCo permanent magnets annually. Production is expected to commence in December. This project is the first instance where LS Eco Energy, in partnership with Australia's Lynas - the sole rare earth separating company outside China - will collaborate in actual production.

Under this global cooperation, Lynas will supply raw materials, while LS Eco Energy will process the metal in Vietnam and send it to a permanent magnet factory operated by LS Cable & System. The two companies cemented their strategic alliance in July, each investing 30 billion won in convertible bonds. This significant development allows the company to actively respond to supply chain adjustments in the global defense market by securing non-China sourcing up to the metal processing stage. LS Eco Energy plans to further expand its production offerings beyond samarium.