LS Eco Energy announced on January 10 that it has signed a rare earth oxide purchase agreement with a Vietnamese mining company.
LS Eco Energy's strategy is to preempt and expand its rare earth supply chain by contracting directly with mine owners.
LS Eco Energy will supply neodymium and dysprosium refined by Vietnam's Hung Thinh Mineral to domestic and international permanent magnet companies. The company expects to supply more than 500 tons per year starting from 200 tons this year.
Vietnam has recently emerged as an alternative supplier of rare earths to China, and government-led development discussions are underway. The company says it is well positioned to secure the supply chain with its 30 years of business experience and network in Vietnam, as well as the non-ferrous metal refining technology of its parent company LS Cable & System.
"We will expand our supply through additional contracts with other mining companies," said Lee Sang-ho, CEO of LS Eco Energy, "and for this purpose, we plan to secure rare earth oxide separation and refining technology."
Rare earth oxide is an essential raw material for permanent magnets used in electric vehicles, wind turbines, and robots. The Vietnamese government is reportedly planning to expand rare earth production from less than 2% of its reserves (22 million tons) to about 9% by 2030.
