Photograph 1) Aerial view of LSCV, LS Eco Energy's production subsidiary in Vietnam



Photograph 2) Illustration of the rare earth permanent magnet manufacturing value chain involving Lynas, LS Eco Energy, and LS Cable & System


■ To exchange KRW 60 billion in convertible bonds to build ironclad alliance combining capital and technology
■ To secure stable supply of raw materials by partnering with only non-Chinese supplier
■ To boost national resource security by securing essential resources for defense, robotics, and EVs  


LS Eco Energy (CEO Lee Sang-ho) announced on the 26th that it has agreed to mutual investments with Australia's Lynas, the world's second-largest supplier of rare earth raw materials.

The two companies disclosed that they will exchange convertible bonds worth KRW 30 billion each and actively promote cooperation in the rare earth supply chain. This signifies a new strategic alliance combining capital and technology and the initiation of full-scale mid-to-long-term cooperation.

The most difficult stage in the rare earth value chain is securing raw materials that have been mined and refined. China supplies most of the global demand, creating a bottleneck. By cooperating with Lynas, LS Eco Energy has laid a foundation for stably sourcing raw materials at reasonable prices over the long term.

Lynas is a leading company in the global rare earths market, and virtually the only one outside of China capable of supplying rare earth raw materials. It has been deemed an irreplaceable, core pillar of LS Eco Energy’s strategy and a counter the weaponization of resources.

Rare earths are essential strategic resources for high-tech industries such as defense, robotics, and electric vehicles. They are applied to end products through a supply chain that runs from mining to oxides, through metal processing and the production of permanent magnets. Due to the production structure centered on specific countries, securing a stable supply chain has emerged as a national task.

These investments are structured to combine Lynas' raw material supply capabilities with LS Eco Energy's metal production technology. The two companies plan to strengthen their influence in the global market by expanding their cooperative system in stages, from raw materials to end products.

CEO Lee Sang-ho of LS Eco Energy stated, "This cooperation is a strategic bond that goes beyond simple investment." He added, "By working together, LS and Lynas will create an optimal, reliable alternative for global companies."