RoK company expands rare earth metal production in Vietnam

LS Eco Energy, a company specialising in renewable energy and rare earth elements under the Republic of Korea (RoK)'s LS Cable & System, 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.

LS Eco Energy factory (Photo: Iscns.co.kr)

Seoul (VNA) – 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.

The new investment is valued at approximately 28.5 billion KRW (19.2 million USD), part of which will be funded through the sale of treasury shares. LS Eco Energy plans to raise around 10.7 billion KRW by selling 297,303 treasury shares to its largest shareholder, LS Cable & System. 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.

According to LS Eco Energy CEO Lee Sang Ho, the decision to expand investment in Vietnam represents an opportunity to transition the rare earth project into the investment and construction phase. The company will officially expand its business from the current focus on cables to the core strategic materials sector./.

VNA