LS Eco Energy Decides on 28.5 Billion KRW Investment in 'Rare Earth Metals' Business

Full-Scale Launch of Permanent Magnet Manufacturing Value Chain

LS Eco Energy is accelerating the establishment of a permanent magnet manufacturing value chain by advancing into the rare earth metals business.

LS Eco Energy Vietnam Manufacturing Corporation exterior view. LS Cable & System

On December 17, LS Eco Energy announced that it had held a board meeting and resolved an investment plan to pursue a rare earth metals business in Vietnam. This investment aims to secure mid- to long-term growth drivers through the rare earth metals business, with a total scale of approximately 28.5 billion KRW. Of this amount, LS Eco Energy plans to raise about 10.7 billion KRW by disposing of 297,303 treasury shares, all of which will be acquired by its largest shareholder, LS Cable & System.

As a result, the rare earth permanent magnet value chain-spanning raw ore and rare earth oxides (global mining companies), rare earth metals (Vietnam, LS Eco Energy), and permanent magnets (United States, LS Cable & System)-will be fully established.

LS Cable-LS Eco Energy Rare Earth Permanent Magnet Manufacturing Value Chain. LS Cable

LS Eco Energy plans to build rare earth metallization facilities at its manufacturing subsidiary in Ho Chi Minh City, Vietnam (LSCV), and produce rare earth metals by refining rare earth oxides supplied by mining companies. The company stated that it is in discussions with global mining companies regarding the supply of rare earth minerals and the establishment of a joint venture (JV), and that the final investment amount may be adjusted depending on the JV equity ratio and business progress. Rare earth metals are a key raw material for permanent magnets used in drive motors for robots, wind turbines, and electric vehicles. In particular, the rare earth metallization process is highly technologically challenging, and, outside of China, only a few countries such as Japan and the United States have achieved commercial production.

Lee Sangho, CEO of LS Eco Energy, stated, "With this investment, we are transitioning the rare earth business into the stages of actual investment and production base establishment," adding, "We will expand our business domain, which has been centered on cables, into the field of strategic core materials."