LS Eco Energy is moving to push into the rare earths business to secure mid- to long-term growth drivers. The investment is about 28.5 billion won.
LS Eco Energy said on the 17th that it held a board meeting and resolved an investment plan to pursue a rare earth metals business in Vietnam. Of the total, LS Eco Energy plans to secure about 10.7 billion won by disposing of treasury shares (297,303 shares). LS Cable & System, the largest shareholder, is set to acquire all of LS Eco Energy's treasury shares.
LS Eco Energy plans to build rare earth metallization facilities at its Ho Chi Minh manufacturing subsidiary (LSCV) in Vietnam and refine rare earth oxides supplied by mining companies to produce rare earth metals. As a result, a rare earth permanent magnet value chain will be established, with global mining companies supplying ore and rare earth oxides, LS Eco Energy refining rare earth metals in Vietnam, and LS Cable & System manufacturing permanent magnets in the United States.
LS Eco Energy said, "We are discussing the supply of rare earth minerals and the establishment of a joint venture (JV) with global mining companies," and added, "The final investment amount may be adjusted depending on the JV equity ratio and the progress of the business."
Lee Sang-ho, CEO of LS Eco Energy, said, "With this investment, we will shift the rare earths business to the stage of actual investment and building a production base," and added, "We will begin in earnest to expand our business scope, previously centered on cables, into the field of strategic materials."