Lynas Collaborated With LS Eco To Build A Rare Earth Metal Factory in Vietnam.

Singapore, March 26th (Argus) - Australian producer Lynas Rare Earths is working on establishing a rare earth metal production facility in Vietnam. The factory will be built by the Korean company LS Eco Energy, with smarantin being the priority product initially.
Lynas stated today that according to the preliminary agreement, Lynas will supply rare earth oxides to the rare earth metal factory that LS Eco Energy is about to establish in Vietnam for further processing. If the cooperation is ultimately confirmed, Lynas will be able to provide additional praseodymium-neodymium metal and selected heavy rare earth products, including smarantin, dysprosium and terbium.
Rare earth magnets, such as samarium cobalt magnets, are important materials used in the automotive, defense and aerospace sectors. Lynas is the only commercial producer outside China that separates samarantin, terbium and dysprosium. Earlier this month, the company achieved the first production of samarium oxide at its refinery in Malaysia.
LS Cable & System's LS Eco Energy stated at the end of last year that the group's goal is to establish a complete rare earth permanent magnet value chain. The company's plan includes obtaining the mineral resources needed for the production of rare earth metals for its factory to be established in Ho Chi Minh City, Vietnam, before ultimately producing permanent magnets in the United States.
In December 2025, the board of LS Eco Energy approved a 28.5 billion won (equivalent to 18.9 million US dollars) investment in the Vietnam factory. LS Eco Energy stated that it is conducting feasibility studies for a US permanent magnet factory and is in discussions with the authorities in Virginia, where the factory may be located. The preliminary agreement between Lynas and LS Eco Energy also requires both parties to negotiate on the final agreement. According to the agreement, each party will subscribe approximately 30 million Australian dollars (equivalent to 20.84 million US dollars) of convertible bonds.