LS Eco Energy is taking a significant step toward establishing a non-China rare earth supply chain, becoming one of the first companies outside China to build a mass production system for defense-grade rare earth metals.
The company announced that it has signed an agreement with Lynas Rare Earths in Singapore to secure raw material supply and accelerate plans for full-scale metal production within the year. The collaboration establishes a global supply chain spanning raw material supply (Lynas), metal processing (LS Eco Energy), and permanent magnet production by LS Cable & System.
The two companies aim to reduce reliance on a single country by building a diversified global rare earth supply chain and expanding their market influence.
LS Eco Energy plans to install metal processing facilities at its Vietnam plant and begin mass production within this year. Initially, the company will focus on producing rare earth metals for defense applications, including aerospace and missile systems, before expanding into materials for robotics and electric vehicles by 2027.
Amid rapidly increasing demand for non-China rare earth sources and limited supply, global inquiries from companies have been rising. The metalization process is considered a critical and technically demanding stage, and LS Eco Energy believes it has strengthened its competitiveness by securing both raw materials and processing capabilities.
The company plans to produce approximately 2,500 tons of rare earth metals annually, including samarium and NdPr (neodymium-praseodymium), enough to manufacture more than 10,000 tons of permanent magnets.
CEO Lee Sang-ho stated that the partnership with Lynas will enhance the company’s global market position while contributing to resource security.
