SEOUL, December 17 (AJP) - LS Eco Energy said on Wednesday its board has approved an investment plan to expand its rare earth metals business in Vietnam, as the South Korean firm seeks long-term growth in strategic materials.
The investment, valued at about 28.5 billion won ($21 million), will be funded in part through the sale of treasury shares. LS Eco Energy plans to raise approximately 10.7 billion won by selling 297,303 treasury shares to its largest shareholder, LS Cable & System, the company said.
The move is aimed at building an integrated value chain spanning raw materials, rare earth oxides, and refined metals. Under the plan, rare earth oxides supplied by global mining companies will be processed into metals at LS Eco Energy’s facilities in Vietnam, with downstream applications including permanent magnets produced through LS Cable & System’s overseas operations.
LS Eco Energy said it will install rare earth metal production facilities at its plant in Ho Chi Minh City, enabling the refinement of oxides into metals. The company is currently in talks with several global mining firms on raw material supply and potential joint ventures. Final investment may change depending on equity participation and project progress.
Rare earth metals are a key input for permanent magnets used in electric vehicle motors, wind turbines, and robotics. The metallization process is technically complex and is currently commercialized primarily in China, Japan, and the United States.
“This investment marks a shift from planning to actual production in the rare earth sector,” Chief Executive Lee Sang-ho said in a press release. “We aim to expand beyond our cable-centered business and position ourselves in strategic materials.”
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