LS Eco Energy Secures Non‑China Samarium Supply Chain
As the United States Department of Defense tightens regulations on the procurement of Chinese rare earths, LS Eco Energy is rapidly emerging as a key player in the realignment of the global supply chain. This is because the company has established a mass production system for ‘samarium (Sm) metal’ b
In response to the United States Department of Defense tightening regulations on Chinese rare earths procurement, LS Eco Energy is establishing a non-China samarium supply chain. The company has developed a mass production system for samarium metal using non-Chinese raw materials, bypassing China's grip on the global market. With the US regulations expanding to include the mining and refining stages of samarium-cobalt (SmCo) permanent magnets, LS Eco Energy is building a stable supply chain, free from China.
The company plans to invest 11.6 billion won in a samarium metal production facility in Vietnam, capable of producing 240 tons annually. This facility will produce 700 to 1,000 tons of SmCo permanent magnets, essential for aerospace and defense sectors. LS Eco Energy is also strengthening its partnership with Lynas, an Australian rare earth company.
The move comes as the US government expands export licensing for seven types of rare earths and maintains existing export control measures. LS Eco Energy aims to expand its rare earth metal production to include dysprosium, terbium, and neodymium-praseodymium, diversifying its business areas from defense to electric vehicle and industrial motor materials.
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