LS Eco Energy and Lynas to Mutually Invest 30 Billion Won to Build Non-China Rare Earth Supply Chain

Signing of Mutual Convertible Bond (CB) Acquisition
Establishing a Complete Value Chain from Raw Material Sourcing to Permanent Magnet Manufacturing

LS Eco Energy has entered into a strategic mutual investment with Lynas, a global rare earths company from Australia, advancing the establishment of a non-China rare earth supply chain.

On July 27, LS Eco Energy announced that it has signed a contract with Lynas for the mutual acquisition of convertible bonds (CBs) worth 30 billion won each. This contract serves as a follow-up to the rare earth business partnership agreement signed last March, aiming to deepen their long-term partnership beyond a short-term supply contract.

Lynas is recognized as a leading company capable of commercial-scale rare earth raw material production outside of China. Through this mutual investment, LS Eco Energy has secured greater stability in sourcing raw materials, which has become increasingly important in light of China’s recent export controls on rare earths.

LS Eco Energy is set to become the first in the non-China region to produce military-grade samarium metal, a critical material for samarium-cobalt permanent magnets used in fighter jets, missiles, and radars. The company plans to sequentially expand its business scope to cover major rare earth metals such as dysprosium, terbium, and neodymium-praseodymium.

This initiative aims to establish a complete non-China rare earth value chain, connecting Lynas’s raw material supply, LS Eco Energy’s rare earth metal production, and LS Cable’s permanent magnet manufacturing.

Lee Sangho, CEO of LS Eco Energy, stated, “This investment is a strategic decision that demonstrates the strong commitment of both Lynas and LS Eco Energy to grow the rare earth business together,” adding, “Based on a stable supply chain for raw materials, we will take the lead in the global market.”

LS Eco Energy Vietnam Manufacturing Corporation LSCV. LS Eco Energy

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