Lynas Rare Earths Ltd. has entered into a partnership with South Korea’s LS Eco Energy to develop a new rare earth metal-making facility in Vietnam, marking an expansion of its downstream processing capabilities.
Under the agreement, the two companies will work toward a definitive long-term arrangement to process a range of Lynas products. The proposed facility, to be constructed by LS Eco Energy (a subsidiary of LS Cable & System), aims to meet surging global demand for the permanent magnets used in electric vehicles and renewable energy technologies.
The partnership will focus on transforming Lynas’ rare earth oxides into metal form, with the production of Samarium metal identified as the initial priority. The facility is also expected to produce metallised neodymium-praseodymium (NdPr) and key heavy rare earth products, including dysprosium and terbium.
To signal their long-term commitment, both companies have agreed to a cross-subscription of convertible instruments valued at approximately AU$30 million each.
Lynas CEO Amanda Lacaze said the move was a key pillar of the company’s ‘Towards 2030’ growth strategy.
“Secure access to metallisation is critical to support a robust rare earths industry, and participating in the metal-making supply chain is a key pillar of our ‘Towards 2030’ growth initiative, the CEO said.
“LS Eco Energy brings significant manufacturing expertise to the partnership, whilst Lynas has deep experience in the rare earths market.”
The move into Vietnam provides Lynas with a secondary metal-making hub, complementing its existing arrangements and diversifying its supply chain away from concentrated markets.
As Western nations scramble to secure ethical supplies of critical minerals, the partnership positions Lynas as an increasingly vertically integrated provider of rare earths.
