LS Eco Energy, a company specialising in renewable energy and rare earth elements under the Republic of Korea (RoK)'s LS Cable & System, announced on December 17 that it has approved a plan to expand its rare earth metal business in Vietnam, in a bid to seek long-term growth in the strategic materials sector, according to a report from the Vietnam News Agency.
The new investment is estimated at approximately 28.5 billion KRW ($19.2 million).
The company aims to create an integrated value chain, including raw materials, rare earth oxides, and refined metals.
According to the plan, rare earth oxides supplied by global mining companies will be processed into metals at LS Eco Energy’s facilities in Vietnam, with downstream applications such as permanent magnets being produced through LS Cable & System's overseas operations.
LS Eco Energy intends to establish a rare earth metal refinery at LS Cable & System's branch in Ho Chi Minh City (LSCV), where it will refine rare earth oxides sourced from mining companies to produce rare earth metals. The company is currently in negotiations with several global mining firms to supply rare earths and establish a joint venture (JV). The final investment amount may be adjusted based on the JV's equity ratio and the progress of the business.
Rare earth metals are crucial for manufacturing permanent magnets used in the motors of robots, wind turbines, and electric vehicles.
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