LS Eco Energy Starts Korea's First 'Rare Earth Oxides'... Signs Contract with Vietnamese Company

Contract Signed with Vietnam Hung Thin Minerals
"Supply Volume Expansion, Securing Separation and Refining Technology Planned"

LS Eco Energy is the first domestic company to start a large-scale rare earth oxide business.

On the 10th, LS Eco Energy announced that it had signed a 'rare earth oxide purchase contract' with a Vietnamese mining company. By directly contracting with the company that owns the mine, the strategy is to secure and expand the rare earth supply chain.

On the 10th, officials are taking a commemorative photo at the 'Rare Earth Oxide Purchase Contract Ceremony' held at the Vietnam Embassy Trade Office in Seoul. From left to right: Koo Bon-gyu, CEO of LS Cable & System; Lee Sang-ho, CEO of LS Eco Energy; Phan Thanh Muon, Chairman of Hung Thinh Group; Nguyen Viet Anh, Charg? d'Affaires of Vietnam.
[Photo by LS Eco Energy]

LS Eco Energy plans to supply neodymium, dysprosium, and other materials refined by 'Vietnam Hung Tin Mineral' to permanent magnet manufacturers both domestically and internationally. The company expects to start with 200 tons this year and supply more than 500 tons annually from next year.

Vietnam has recently emerged as a rare earth supplier replacing China, and government-led development discussions are actively underway. The company believes it is advantageous in securing the supply chain due to about 30 years of business experience and networks in Vietnam, as well as the non-ferrous metal refining technology of its parent company, LS Cable & System.

Lee Sang-ho, CEO of LS Eco Energy, said, "We will expand supply volume through additional contracts with other mining companies," adding, "We also plan to secure rare earth oxide separation and refining technology for this purpose."

An LS Cable & System official said, "This contract is significant as the beginning of building LS Cable & System's rare earth value chain," and added, "We are exploring cooperation plans with global permanent magnet manufacturers."

Meanwhile, rare earth oxides are essential raw materials for permanent magnets used in electric vehicles, wind turbines, and robots. The Vietnamese government is reportedly planning to increase rare earth production, which currently accounts for less than 2% of the estimated reserves (22 million tons), to about 9% by 2030.