Photograph) LS Eco Energy's Vietnamese production subsidiary LSCV


■ World's largest rare earths company invests directly in LS Eco Energy  
■ Establishing world's first non-Chinese supply chain for the defense industry amid surging demand for alternative sources  
■ Strategic value chain from raw materials to metals and permanent magnets


LS Eco Energy (CEO Lee Sang-ho) is looking to establish a global non-Chinese rare earths supply chain through a strategic mutual investment with Australia's Lynas.

The company announced on the 27th that it has signed a contract with Lynas under which each company will acquire KRW 30 billion worth of convertible bonds from the other.

This contract, a follow-up to the rare earths business cooperation agreement signed in March, goes beyond a simple supply agreement by establishing a cooperative system for sharing long-term interests.

Lynas is virtually the only company outside of China capable of large-scale commercial production of rare earth raw materials. Cooperating with them will ensure a stable supply for LS Eco Energy, a core competitive edge when it comes to rare earths.

With China's recent export controls on rare earths, diversifying supply chains is emerging as a core task for national security and industrial competitiveness, especially in the US and Europe. Demand for non-Chinese rare earths is also rapidly increasing, with companies willing to pay a premium for supply stability.

LS Eco Energy plans to produce the first samarium metal for defense applications outside of China, and later expand into rare earth metals such as dysprosium, terbium and neodymium-praseodymium. Samarium is a core material for the samarium-cobalt permanent magnets used in fighter jets, missiles, and radars.

The goal is to establish a non-Chinese rare earth value chain connecting raw materials from Lynas with metal production by LS Eco Energy and permanent magnet manufacturing by LS Cable & System.

"These investments represent a strategic decision that demonstrates the intention of both Lynas and LS Eco Energy to grow the rare earth business together," said Lee Sang-ho, CEO of LS Eco Energy. "We'll continue to lead the global market by drawing on our stable raw material supply chain."