LS Eco Energy said on the 26th that it agreed with Australian Lynas, the world's No. 2 supplier of rare earth raw materials, on mutual investment to cooperate on a rare earth supply chain. The two sides will exchange convertible bonds (CBs) worth 30 billion won each to build a strategic alliance combining capital and technology and to begin full-fledged mid- to long-term cooperation.
Rare earths are a strategic resource essential for advanced industries such as defense, robotics and electric vehicles (EVs). They are applied to final products through a supply chain that runs from mine extraction to oxides, metal processing and permanent magnets.
In particular, due to a China-centered production structure, securing a stable supply chain has emerged as a national task. Lynas is considered virtually the only corporations capable of supplying rare earth raw materials outside China.
Through this cooperation, LS Eco Energy has established a foundation to secure raw materials stably over the long term at reasonable prices. The two sides plan to gradually expand a cooperative framework that runs from raw materials to final products.
Lee Sang-ho, CEO of LS Eco Energy, said, "This cooperation is a strategic bond that goes beyond a simple investment," and added, "The combination of LS and Lynas will be the best, reliable alternative for global corporations."