Photograph 1) Panoramic view of LSCV (LS Eco Energy’s production subsidiary in Vietnam)

Photograph 2) Diagram of the rare earth value chain (LS Cable & System – LS Eco Energy) 


■ Board of directors approves investment plan, pushes for construction of metallization facility in Vietnam
■ Establishment of a metallization – permanent magnet value chain in collaboration with mining firms and LS Cable & System
■ Supply of core materials for advanced industries, including robotics, wind turbines, and electric vehicles


LS Eco Energy (CEO Lee Sang-ho) announced on December 17 that its board of directors has approved a plan to invest in a rare earth metal business in Vietnam.

This investment is aimed at securing mid-to-long-term growth engines through the rare earth metal business, with a total investment size of approximately KRW 28.5 billion. LS Eco Energy plans to raise approximately KRW 10.7 billion of this amount by disposing of 297,303 treasury shares, all of which will be acquired by its largest shareholder, LS Cable & System.

This move accelerates the establishment of a rare earth permanent magnet value chain: raw ore and rare earth oxides (Global Mining Firms) → rare earth metals (Vietnam, LS Eco Energy) → permanent magnets (USA, LS Cable & System).

LS Eco Energy plans to install rare earth metallization 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 that the company is currently in negotiations with global mining firms regarding the supply of rare earth minerals and the establishment of joint ventures (JVs), with the final investment amount subject to adjustment based on JV 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 metallization 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."