South Korea’s LS Eco Energy says a planned alliance with Australian miner Lynas Rare Earths is a step towards securing vital raw material inputs into its expanding industrial product portfolio.
LS Eco Energy is a subsidiary of Anyang-headquartered LS Cable & System, said to be among the world’s top five cable makers. CEO Lee Sang-ho said late last year LS Eco Energy aimed to “expand our business portfolio significantly, beyond our existing focus on cables, into the sector of core strategic materials”.
The company is investing about US$20 million in rare earth metallisation facilities in Ho Chi Minh City, Vietnam, to position it in permanent magnet value chains. It said rare earth metals were essential materials for permanent magnets used in drive motors for robots, wind turbines and electric vehicles.
LS Eco Energy said this month it was pursuing new robotics, artificial intelligence and advanced industrial materials and components investments.
Lynas said its framework agreement with LS Eco Energy provided a basis for a later definitive deal on long-term supply of materials to the Vietnam plant. The initial focus would be on samarium metal production. The two companies would also work to forge separate definitive agreements on cross-subscription of US$21 million convertible instruments.
“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,” Lynas CEO Amanda Lacaze said.
“LS Eco Energy brings significant manufacturing expertise to the partnership, whilst Lynas has deep experience in the rare earths market. This framework agreement demonstrates our joint commitment to continuing to grow industry capability and deliver success for both businesses.”
Earlier this month Lynas and Japan Australia Rare Earths signed a memorandum of understanding to collaborate in the rare earths value chain.
