RoK firm LS Eco Energy expands rare earth metal operations in Vietnam
VOV.VN - The Republic of Korea’s LS Eco Energy, a subsidiary of LS Cable & System, has approved a plan to expand its rare earth metals business in Vietnam as part of its long-term growth strategy in the strategic materials sector.
The firm’s board of directors recently endorsed an investment worth approximately KRW28.5 billion (US$21 million) partly funded through the sale of treasury shares. LS Eco Energy expects to raise about KRW10.7 billion by selling 297,303 treasury shares to its largest shareholder, LS Cable & System.
LS Eco Energy aims to establish an integrated value chain covering raw materials, rare earth oxides, and refined metals. Under this strategy, rare earth oxides sourced from global mining firms will be processed into metals at LS Eco Energy’s facilities in Vietnam, with downstream applications including permanent magnets produced through LS Cable & System’s overseas operations.
The firm also plans to construct a rare earth metallurgy facility at LS Cable & System’s Ho Chi Minh City branch and then subsequently refine the rare earth oxides supplied by mining companies to produce rare earth metals.
A LS Eco Energy representative said the firm is in negotiations with several global mining businesses on mineral supply and the formation of joint ventures. The final investment amount may vary depending on joint venture ownership structures and the project’s progress.
According to LS Eco Energy CEO Lee Sang-ho, the decision to expand investment in Vietnam marks an opportunity to move the firm’s rare earth project into the investment and construction phase of a physical production facility. He added that the move would formally extend the firm’s business beyond cables into the core strategic materials sector.
Amid ongoing US–China trade tensions, Vietnam is emerging as a promising alternative supplier. Previously, LS Eco Energy worked with the Korea Institute of Geoscience and Mineral Resources and Seoul National University to secure rare earth refining technologies and develop a value chain linked to Vietnam’s resource potential.
RoK, Vietnam boost cooperation in critical minerals supply chains
VOV.VN - The Korea Overseas Resources & Energy Industry Association (K-RESOURCES) on December 2 announced that it had held the inaugural meeting of the “Vietnam Mining Investment Consultative Mechanism” in Seoul.
