HCMC – The Australian company Lynas Rare Earths Ltd and the South Korean firm LS Eco Energy Ltd have signed a framework agreement to develop a rare earth metals processing facility in Vietnam.
Lynas announced on March 26 that the two companies aim to finalize a long-term deal to process rare earth metals at a new plant to be built by LS Eco Energy.
The facility will convert rare earth oxides into metals used to produce permanent magnets for electric vehicles, robotics, electronics and wind turbines.
The project would enable Lynas to supply additional products, including neodymium-praseodymium (NdPr) and heavy rare earths such as samarium, dysprosium and terbium. Samarium production is expected to be prioritized in the initial phase.
In December 2025, LS Eco Energy, a subsidiary of LS Cable & System, approved an investment of about 28.5 billion won (US$21 million) to develop rare earth metal production infrastructure in Vietnam.
The company plans to build an integrated value chain covering raw materials, oxides, refined metals and downstream products such as permanent magnets.
Under the plan, rare earth oxides will be sourced from global mining companies and processed into metals at LS Eco Energy’s facilities in Vietnam. Downstream production is expected to be carried out through LS Cable & System’s overseas network.
LS Eco Energy plans to establish the refining plant at its affiliate’s branch in HCMC. Its Chief Executive Officer Lee Sang Ho said that the expansion marks a shift from cable manufacturing into strategic materials, with rare earths identified as a long-term growth area.
China currently dominates the global rare earth supply chain, from mining to processing. The partnership between Lynas and LS Eco Energy indicates Vietnam’s expanding role in processing and metal production.
According to the U.S. Geological Survey, Vietnam holds about 22 million tons of rare earth reserves, ranking second globally, though much remains underutilized due to limited processing capacity.
