LS Eco Energy to invest in Vietnam rare earth sector
LS Eco Energy to invest in Vietnam rare earth sector
LS Eco Energy is making a strategic push into Vietnam’s rare earth metal sector, aiming to secure new growth engines and strengthen its long-term business portfolio.
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The company announced on December 17 that its board approved a plan to invest about KRW28.5 billion ($19.25 million) in a rare earth metal business, targeting mid- to long-term growth. LS Eco Energy plans to raise roughly KRW10.7 billion ($7.23 million) by selling 297,303 treasury shares, all of which will be acquired by its largest shareholder, LS Cable & System.
The move accelerates the establishment of a rare earth permanent magnet value chain, moving from raw ore and rare earth oxides (Global Mining Firms) to rare earth metals (Vietnam, LS Eco Energy) and onward to permanent magnets (the US, LS Cable & System).
LS Eco Energy plans to install rare earth metallisation facilities at its production subsidiary in Ho Chi Minh City (LSCV). There, the company will produce rare earth metals by refining rare earth oxides supplied by mining firms.
A spokesperson of LS Eco Energy stated, "The company is currently in negotiations with global mining firms regarding the supply of rare earth minerals and the establishment of joint ventures, with the final investment amount subject to adjustment based on joint venture equity ratios and business progress."
Rare earth metals are essential raw materials for the permanent magnets used in drive motors for robots, wind turbines, and electric vehicles. As the technical barriers to rare earth metallisation are high, commercial production outside of China is limited to only a few countries, such as Japan and the United States.
"With this investment, we will transition our rare earth business from the planning phase to actual investment and the construction of a base for production," said Lee Sang-ho, CEO of LS Eco Energy. "We intend to expand our business portfolio significantly, beyond our existing focus on cables, into the sector of core strategic materials."
- 17:31 22/12/2025
